The news:
- Tanzania’s Registration, Insolvency and Trusteeship Agency (RITA) has disclosed finalising the liquidation of the defunct telecom provider Sasatel after it confirmed that the telco could neither continue operation nor settle its debts.
- Hydrox Industrial Services Limited, an industrial service provider based in Dar es Salaam, Tanzania, was also named.
- On Monday, July 8, 2024, Frank Kanyusi, the Chief Executive Officer (CEO) of RITA, explained that the agency's move to liquidate the two firms was designed to protect the rights of shareholders, partners, creditors and employees.
He added that the action was also part of RITA’s effort to ensure that all government taxes and dues were duly paid.
Reiterating the broad responsibilities of his agency in the Eastern African nation, Kanyusi said, “The general public needs to understand that apart from registering births, deaths, marriages, divorces, and adoptions, RITA also oversees the insolvency of corporate bodies and even that [the insolvency] of individuals.”
Additionally, he also noted that the agency handles the registration of the boards of trustees, management of unclaimed property, drafting and safekeeping of wills, and the administration of estates.
In line with the agency’s mandate, Kanyusi said RITA received authorisation from the court to liquidate the telecom firm.
Accordingly, RITA has since issued notices to inform the public, especially those with interests in the telecom firm who are required by law to come forward and state their interests before the process concludes.
Kanyusi assured that RITA is committed to fulfilling its responsibilities professionally in line with the key pillars of Tanzanian President Samia Suluhu Hassan's administration of the 4Rs — Reconciliation, Reform, Resilience, and Rebuilding.
When Dovetel Limited, which traded as Sasatel, emerged in 2008, industry stakeholders and key players saw it as the beginning of cutthroat competition among operators.
However, the telecom company fell off quickly following its failure to compete effectively with existing telcos, which included Vodacom, Tigo, and Airtel (formerly Zain).
Sasatel soon shut down its business permanently, leaving RITA to liquidate the company.
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Similarly, Copia Global, a Kenyan B2C eCommerce startup, has abandoned efforts to revive its business and is set to liquidate assets, offer severance packages to employees, and pay creditors.
