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Overview

ZTE Corporation contributes to $300 million loan to Econet Wireless Zimbabwe for ICT market consolidation and new services (Linked to Record ID#62603)

Commitments (Constant USD, 2023)$156,929,757
Commitment Year•2015Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 4, 2015
Start (planned)
Dec 4, 2015

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Cofinancing agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • Econet Wireless Zimbabwe Limited

Loan description

CDB and ZTE Corporation contribution to $300 million syndicated loan to Econet Wireless Zimbabwe in 2015

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 4, 2015, China Development Bank and ZTE (中兴通讯) Corporation provided a $300 million loan to Econet Wireless Zimbabwe for ICT market consolidation and new services. The borrowing terms of the loan and the breakdown of financing between the two financiers are unknown. According to a statement released by Econet Wireless, the parent group Econet Global secured a $500 million from China Development Bank and ZTE. According to Douglas Mboweni, Econet Wireless Zimbabwe’s CEO, the loan was negotiated at the group level and $300 million from the $500 million facility will be channelled to Econet Zimbabwe. Record ID#62603 captures the estimated financial commitment of China Development Bank, while Record ID#100875 captures the estimated financial commitment of ZTE Corporation.

Staff comments

1. The individual contributions of China Development Bank and ZTE Corporation to the $300 million syndicated loan are unknown. For the time being, AidData assumes equal contributions ($150 million) across all two known members of the syndicate.