Bharti Airtel to pay Tanzania 60 billion shillings

India’s Bharti Airtel has agreed to pay 60 billion shillings over five years and cancel the debt to resolve a dispute over ownership.
Bharti Airtel settles Tanzania Government
People walk past an advertisement for mobile- telecommunications service provider ‘Airtel’ on May 20, 2011 in the Kenyan capital, Nairobi. India will seek to expand its economic footprint in Africa, where its rival China has made major inroads, at the second India-Africa summit next week in Addis Ababa. India’s Bharti Airtel — the world’s fifth largest mobile phone company — acquired the 16-African country unit of Kuwaiti telecom firm, Zain at a cost of $10.7 billion in 2010 when India’s imports from Africa were worth $20.7 billion and its exports stood at $10.3 the same year even though China’s trade with Africa remains far heftier. AFP PHOTO/Tony KARUMBA (Photo by TONY KARUMBA / AFP)

India’s Bharti Airtel has agreed to pay 60 billion shillings over five years and cancel the debt to resolve a dispute over ownership of its Airtel Tanzania unit.

Tanzania’s minister for foreign affairs and East African Cooperation, Palamagamba Kabudi, announced the deal at a ceremony to receive a three-month batch of monthly payments worth 1 billion shillings each due from April this year.

Bharti Airtel also cancelled $407 million of debt owed to it by Airtel Tanzania as part of the settlement, Kabudi said.

Related: Tanzania’s shares in Bharti Airtel set to increase

In 2017, the Indian company was drawn into a dispute with Dar es Salaam over ownership of the mobile operator after President John Magufuli said it was fully owned by state-run Tanzania Telecommunications Company Ltd (TTCL).

Your Friends Also Read:  Rwanda Raises Price of Fuel, Gas as Government Increases Subsidy

He said TTCL had been cheated out of its shares through an irregular privatization process. Bharti Airtel rejected the claim, saying it had complied with regulatory approvals when it acquired a 60% stake in the firm.

Following prolonged negotiations, the two sides in January signed a settlement that included Bharti Airtel agreement to increase the government’s stake in the company from 40% to 49%.

Related: Airtel Africa awaits regulatory approval for London Stock Exchange listing

Bharti Airtel Executive Chairman, Sunil Bharti Mittal said he hoped the deal would “give a fresh start to the company”.


All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.
Your Friends Also Read:  South African electricity company, Eskom gets R59 billion bailout

Contact: digital@newscentral.ng

Total
0
Shares

Leave a Reply

Previous Article
Botswana's High Court legalises homosexuality, repeals colonial penal code

Botswana's High Court legalises homosexuality, repeals colonial penal code

Next Article
Moroccan lawmakers pass law adopting Berber as official language

Moroccan lawmakers pass law adopting Berber as official language

Related Posts
Powered by Live Score & Live Score App