Airtel Tanzania is set to own a 49% stake in India’s Bharti Airtel Company.
The value for shares being transferred to the government has not been disclosed.
The agreement with Bharti Airtel increases the East African government’s share in the mobile phone company by 9%.
Tanzania’s president John Magufuli said in a statement that, in addition to giving the government more shares, Bharti Airtel had agreed to pay dividends to the state.
The Tanzanian president also claims the government had not received dividends in 8 to 10 years.
President Magufuli had said in 2017 that state-run Tanzania Telecommunications Company Ltd (TTCL) owned the local subsidiary of Bharti Airtel outright but had been cheated out of shares.
Bharti Airtel disputed this, saying it received all the required approvals from the state when it bought a 60 percent stake and had complied with all government rules.
Airtel Tanzania is yet to comment on the announcement of transfer of shares