TTCL needs USD150m state bailout to avoid collapse

21 Oct 2009

Tanzania’s Parliamentary Committee on Infrastructure has requested that the government bail out its ailing national fixed line PTO Tanzania Telecommunication Company Limited (TTCL), arguing the company could be close to collapse. Committee spokesman Prof Philemon Sarungi told reporters that the telco, which is a joint venture between the government and Zain Tanzania, needs an urgent cash injection of USD150 million, almost double its own liability portfolio of USD80 million. The state controls 65% of the operator with the remainder held by Zain, however the two partners have a strained relationship and the latter is reportedly seeking to exit the company. Unconfirmed reports say an unnamed Chinese bank is willing to provide the loan subject to it receiving the necessary guarantees from the government.

Tanzania, Tanzania Telecommunication Corporation