Sh700bn loan deal inked to tweak TTCL’s operations
TTCL’s chief executive officer, Dr Kamugisha Kazaura (L) and TIB’s deputy managing director, Mr Jaffer Machano (R) after signed memorandum of understanding (MoU) that will see the two state-owned institutions cooperate in sourcing a $329 million (about Sh707 billion) loan to tweak the telco’s operations.
What you need to know:
The TIB Corporate Bank and the Tanzania Telecommunications Company Limited (TTCL) yesterday signed a memorandum of understanding (MoU) that will see the two state-owned institutions cooperate in sourcing a $329 million (about Sh707 billion) loan to tweak the telco’s operations.
Dar es Salaam. The TIB Corporate Bank and the Tanzania Telecommunications Company Limited (TTCL) yesterday signed a memorandum of understanding (MoU) that will see the two state-owned institutions cooperate in sourcing a $329 million (about Sh707 billion) loan to tweak the telco’s operations.
Under the pact signed by TTCL’s chief executive officer, Dr Kamugisha Kazaura, and TIB’s deputy managing director, Mr Jaffer Machano it will be possible to help the telecommunication firm to source funds to implement its three-year business transformation programme.
The deal will also see TIB Corporate Bank – which is a subsidiary of TIB Development Bank Limited – issue a $22 million (about Sh47 billion) loan for TTCL to start implementing part of the project.
The total cost for the project is $329 million.
Key on TTCL’s agenda is the building of relevant infrastructure to accommodate its recently-launched high-speed wireless data communication for mobile phones and data terminals, under its Fourth Generation- Long Term Evolution (4G-LTE) project. Dr Kazaura said in the city yesterday that the money would be used for installing new plants and improving infrastructure, and eventually services.
“Our goal is to make sure that we connect the entire country with 3G and 4G technologies to ensure that customers access speedy and quality internet services,” he said.
In two months to come, the company plans to connect its customers in Arusha, Mwanza, Dodoma, Mbeya and Tanga get to the 4G technology,. It will also launch new services like online education and health services while sectors of agriculture, trade and industries will also benefit from TTCL’s 4G services. Mr Machano said the bank considers construction and infrastructure improvement as key for Tanzania’s economic future.
“Our move to support TTCL follows our realization of the fact that infrastructure is of paramount importance in the development of any sector, communication sector in particular,” noted Mr Machano.
