China’s state owned Datang Telecom International Technology Company plans to lend the Tanzania Telecommunications Company (TTCL) USD 300 million to improve its technological capabilities and expand its network, especially in rural areas.
The President of Datang, Mr. Yuang Yong has issued a statement on 1st March 2017 after meeting and hold talks with Vice President of Tanzania, Hon Samia Hassan, in Dar Es Salaam
The President said the aim of the strategy is to make TTCL be the best telecom company in East and Central Africa.
He said that good relations between Tanzania and China have led the company to invest in the telecommunications sector in the country and ensure the citizens of Tanzania have access to quality and modern communication services in urban and rural areas.
Datang also plans to build a large factory to manufacture communications equipment in Tanzania in collaboration with TTCL.
Early this year, TTCL announced that it was looking for TZS 600 billion (USD 300 million) to roll out its new development strategy.
Since 2015, the Tanzania Investment Centre (TIC) may grant the status of “special strategic investment” to projects with an investment of at least USD 300 million and that meet certain other criteria.
Strategic investments enjoy more incentives than normal investments.
TTCL is the oldest and largest fixed line telecommunications company in Tanzania.
The company was wholly owned by the Government of Tanzania until the partial privatization of the company in 2001 when Bharti Airtel acquired a stake in TTCL as part of a USD 10.7 billion pan-Africa deal.
However, in February 2016, Bharti Airtel agreed to sell its shares back to the government for and the sale was concluded on 23 June 2016 when the company returned to being entirely state owned.
