On The Money - In Brief
- China's ZTE Corporation International, a firm linked to telecommunications sector, will finance about USD 400 million for Angola, a press release issued by the Cabinet Council announced. From this amount, according to the source of the Cabinet Council's meeting, presided over by President Jose Eduardo dos Santos, at least 300 million dollars will be used in the construction of Angola Telecom's network and the remaining goes to the military telecommunications system, the building of a mobile-phones factory and the creation of a telecommunications institute for the training of Angolan staff. The surplus will also be invested in the creation of a telecommunication laboratory for researching activities of this sector.
- Though alleged to be inefficient, an independent investigation into the activities of Sierratel has however proved that the government owes this institution the sum of 21 billion leones, of which there is no sign that the government is ready to pay the said amount. Officials of the institution expressed concern over the ailing condition of the institution adding that with even a quarter of the amount paid by the government would help to turn the company around to improve its services and establish more lines. The institution, they noted, need money to keep their lines in operation as they have to pay bills and also keep generators working in certain areas for as long as eighteen hours per day to keep the lines in operation. The company cannot provide a befitting network when such an amount is owed it by government and other customers are not paying their bills regularly.
- The Government is to off-load 11 per cent of Telkom Kenya's shares in mobile phone company, Safaricom. In a Physical Infrastructure Sector Medium Term Expenditure Framework (MTEF) report, the State is also planning to sell part of Telkom to a strategic investor. The move by the Government is seen as a way for Telkom to raise funds for capital expenditure, redundancy payments and part of its debt. Telkom and Vodafone are joint partners in Safaricom, but Telkom is the majority shareholder with a 60 per cent stake.