The Tanzanian government has recapitalised incumbent Tanzania Telecommunications Company Ltd (TTCL) to the tune of TZS96.4 billion (USD45.5 million), Agence Ecofin writes, citing comments by Deputy Minister for Communication, Science and Technology January Makamba. The amount represents a secured loan from a number of financial institutions, and will be used to improve and expand the operator’s network infrastructure.
Meanwhile, the telco’s management is said to have cleared its debts: TZS76.6 billion was owed to the state and a further TZS25 billion was paid back to the Tanzania Communications Regulatory Authority (TCRA).
TeleGeography notes that the move to eliminate outstanding debt coincides with the state’s proposed buyout of the remainder of TTCL that it does not already own, following its agreement to purchase a 35% stake from India’s Bharti Airtel. Earlier this week Makamba informed parliament: ‘Legal procedures are now being finalised for the government to buy back Airtel’s shares in TTCL and regain sole ownership of the company.’