TTCL to raise USD330m in five-year restructuring plan

28 Jan 2016

National PTO Tanzania Telecommunication Company Ltd (TTCL) aims to raise USD330 million as part of a five-year restructuring project, The East African reports. The decision includes plans to list on the Dar es Salaam Stock Exchange (DSE), and arrives as the government is finalising its acquisition of Indian-backed Bharti Airtel’s 35% stake in TTCL, which will bring the operator back under full state control.

TTCL Managing Director, Dr Kamugisha Kazaura, commented: ‘We will list on the stock market as part of the strategic business plan, which we will start implementing immediately after the takeover. We will strategically expand into the mobile-phone market, focusing on voice and data services in both rural and urban areas.’ It is expected that USD100 million will be invested in operations over the first year of the restructuring plan, while the second phase will see approximately USD200 million of capital injected via a commercial loan, which will be utilised to expand TTCL services across the country.

As noted in TeleGeography’s GlobalComms Database, under the rules laid down in 2010, domestic telcos were required to offer shares to the public and list with the DSE within three years of the regulation’s enactment. It was October 2014 before there was any traction regarding the legislation, when Minister for Communication, Science and Technology, January Makamba, revealed plans to start listing all telecoms operators on the stock exchange in early 2015 in order to allow citizens a stake in what had become one of Tanzania’s fastest growing industries. As yet, listing has still not begun.

Tanzania, Tanzania Telecommunication Corporation