Chinese shot in the arm for NetOne
Zimbabwe - Economic - 02-08-2010

The Peoplequotes Republic of China has extended a USD 53m financial package to bankroll the expansion of mobile phone operator NetOne which has been installing new base stations across the country to beef up its capacity. Under the agreement, which was announced a fortnight ago in Harare, China, an emerging economic superpower, would extend a USD 7.35m grant to Zimbabwe for the network expansion programme. An additional USD 46m loan will also be made available as part of the package, Chinese Ambassador to Zimbabwe Xin Shunkang said during celebrations to mark the 30th anniversary of China Zimbabwe diplomatic relations. “Our two countries have just signed two agreements on the provision of a USD 46m concessional loan and the USD 7,35m grant respectively to support NetOne expand its network coverage and implement the projects to be agreed upon through consultations between the two governments. “For 3 years since the Beijing summit of the Forum on China Africa Co-operation, China has played an active role in promoting Sino-Zimbabwe practical co-operation in various fields and the implementation of 8 measures has been launched comprehensively with smooth progress,” he said.

Minister of Information Communication Technology Mr Nelson Chamisa said the loan would go a long way in helping the company which is battling to settle a USD 28m debt, which it received from international financiers and part of its recapitalisation and expansion programmes. “As Government we have realised that most of our companies are in urgent need of recapitalisation. This loan comes in very handy as it will go a long way in improving the infrastructure at the company. There is urgent need for recapitalisation in the whole ICT sector, which is lagging behind in terms of development,” he said. The international financiers advanced capital to NetOne for its expansion drive. NetOne has also recommended Government to review its policy on procurement, arguing efforts by the company to keep abreast with new technologies were being delayed by bottlenecks in the State Procurement Board. The ongoing network expansion by NetOne includes the commissioning of a second mobile switching centre in Bulawayo in 2008, which involved the installation of 42 new base stations. At least 35 other base stations were installed across the country then. If China releases the new funding, it will play a critical role in increasing access to mobile telecommunication services in Zimbabwe. A number of international companies have approached both the Government and the parastatal seeking partnership to run the company. However, analysts believe that 2010 could be a better year for innovation as telecommunication companies strive to provide cheaper and extended services to the countryquotes unconnected population, particularly in rural areas.

Source: Sunday Mail