Government to launch probe into Tigo Tanzania’s ownership, paper says

24 Apr 2012

A report in the East African Business Week says that the government of Tanzania is preparing to launch a probe into the ownership status of local mobile operator MIC Tanzania Limited (Tigo), following questions from members of parliament who want to know why it is wholly foreign-owned contrary to local law – and specifically the Electronic and Postal Communications Act (EPOCA) of 2010. Tigo Tanzania is a 100% owned subsidiary of Millicom International Cellular (MIC), which in January 2006 bought out the 15.6% stake owned by then non-controlling shareholder Ultimate Communications Limited for USD1.332 million, to assume full control. However, last week the Kigoma north member of parliament for the Chadema party, Mr Zitto Kabwe, said that Tigo’s wholly foreign-owned status is in direct contravention to the EPOCA Act, and also went on to question why it was that in 2005 the then government, which had held a stake in the operator, contentiously decided to cancel its call option on the business. The government has promised to review the details of the original sale and report back to the National Assembly in August.