Tanzania’s “Bulldozer” wins Mega billions Deal from Airtel International
The opponents of President John Magufuli’s courage and commitment of re-negotiating and making big deals with investors have continued to be ashamed after investors continued to respond positively to government’s call and requests.
This time, the India based Bharti Airtel international has agreed and handled over a total of sh 5.27 billion to Tanzanian government as part of the implementation of their agreement over Airtel ownership in Tanzania
The amount includes sh 2.27 billion as support to the government for economic development and sh 3 billion as part payment in implementing the agreement.
Airtel Tanzania had for many years having misunderstandings with Tanzania over ownership in terms of shares, dividends and debts even before President Magufuli came into power. Previously, the government of Tanzania and Aitel Tanzania owned 40 and 60 shares respectively. However, for over 19 years there was no dividend to the state.
When President Magufuli came into power in the past three years did not agree with such exploitative ownership as it was against the country’s policy where the government and investors are supposed to own 49 and 51 shares respectively.
President Magufuli formed the committee of re-negotiating the terms of contract. Yesterday, the negotiations yielded fruits after Airtel international agreed to work mutually with the government in a new and fruitful contract to both parties.
Enumerating the results of negotiations, President Magufuli warned opponents of negotiations who have been moving around the world tarnishing the name of Tanzania and his government.
It should be noted that the opposition and their members of the parliament have been using international media and conferences outside the country to oppose President Magufuli’s stance of renegotiating bogus contracts that have been enriching them and their sponsors.
President Magufuli said without re-negotiations the country could have continued to lose in the business. He said now Airtel Tanzania has promised to pay sh 1 billion each month in the period of five years ( sh 60 billion) to the government of Tanzania to settle the Airtel ownership misunderstandings.
“If sh 60 billion will be dished in constructing health centres, 150 health centres to serve women, children and the elderly will be constructed in the country. This is what we call big deals and commitment of government that works for the poor,” President Magufuli said.
President Magufuli also said that Airtel international has also announced the write off of the debt amounting about sh 1trillion that Tanzania owned the telecom firm
Moreover, President Magufuli said Airtel international has agreed to pay dividends to the government of Tanzania to the tune of sh 10 billion money which Tanzania has not received during the past 10 years.
Stressing in the jovial mood after hard work, President Magufuli said the negotiations have made the government’s shares in Airtel to increase to 49 percent, from 40 percent thus narrowing Bharti Airtel’s ownership to 51 percent from 61 percent of the previous
According to President Magufuli Airtel management structure will also change where the board chairman and technical director will be appointed by the government.
Airtel International boss Mr. Sunil Bharti has congratulated President Magufuli for negotiating for future betterments of Tanzanians. He hoped that after the fruitful agreements with the government, Tanzanians will support the growth of his company.
Speaking at the event both the Ministers of Finance and Planning Dr. Mpango and Foreign Affairs and East Africa Cooperation Prof. Paramagamba Kabudi congratulated President Magufuli for initiating the re-negotiations.
Dr. Mpango added that about sh 2.27 billlion provided by Mr. Bharti to construct Uhuru Hosptal in Dodoma will leave a mark of President Magufuli’s commitment and good will to serve all Tanzanians particularly the poor.
This is the second mega deal that has been made by President Magufuli in the period of three years. In 2017, President Magufuli initiated re-negotiations with Barrick Gold’s exploitative and non beneficial mining contracts to the country and Tanzanians at large.
After intense discussions between the government and Barrick Gold experts the mining company agreed to give Tanzania a 16% stake in three gold mines operated by its subsidiary Acacia Mining and a one-off payment of $300 million (£227.6 million) to resolve a dispute that had hit its operations in the country.
Chairman John Thornton said the agreement also included a 50:50 partnership between the government and Acacia Mining to share revenues from all the mines the company runs in the east African nation
Barrick Gold agreements where a thorn to opposition members of the Parliament led by Tundu Lissu who were campaigning for the opposite saying that the negotiations will make Tanzania hit hard by mining companies in international courts.
