Econet Wireless secures US$362 million in funding earmarked for Zimbabwe

Econet Wireless says it has secured a US$362 million loan facility to finance network upgrades, and that 70 per cent of the funding will be spent in its Zimbabwean subsidiary.

A total of US$307 million will be spent in Zimbabwe, of which US$225 million will be used to refinance short-term local loans with cheaper long term loans. The rest will go towards further network upgrades and developing non-voice value added services.

The loan facility was arranged by banks in Germany, France, China, Netherlands, South Africa and Sweden.

Econet is also expected this year to introduce new solar products including one called Home Power Station it introduced last year through its subsidiary, Econet Solar.

Earlier this year, a court in Nigeria upheld Econet Wireless’ five per cent claim to Airtel Nigeria, a cellco to which it was a founding shareholder in 2001. The court sided with the Zimbabwe operator that its stake had been unfairly cancelled, and any decisions since the cancellation are void.

Econet went on to say it is seeking at least US$3.1 billion in damages the dispute.