CDB pledges loan to subsidiary of Zimbabwe Broadcasting Corporation for provision of 24 radio and TV transmitters

Project narrative

Leading up to a memorandum of understanding agreement (MOU) signed in March 2006 by President Mugabe, representatives from the Chinese private telecom company Star Communications signed a $63 million agreement with the Zimbabwean state-owned media entity Transmedia — a subsidiary of the Zimbabwe Broadcasting Corporation — for the provision of 24 transmitters for the Zimbabwe national radio and television network on 23 October, 2005. The installation of the transmitters would reportedly increase the percentage of the population with access to radio and television to 90% (from a baseline level of 30%). More specifically, it was envisaged that the transmission equipment would used to repair broken equipment, upgrade four radio networks, upgrade Zimbabwe Television, add two additional radio networks, and establish nearly 60 new community radio stations with a planned completion date of the end of 2007. China Development Bank agreed in principle to provide a loan for this project. The loan was to be repaid with the proceeds from a joint venture mining agreement between Chinese investors and the Zimbabwe Mining Development Co-operation (ZMDC). The Chinese investors reportedly expressed a special interest in the mining of chrome along the Great Dyke as well as nickel and other base metals. The Reserve Bank of Zimbabwe agreed to assist ZMDC with the remittance of foreign currency back to China. Officials involved in the deal included Deputy Director of China Development Bank Zhao Jianping, President of Star Communications (China) Pang, Governor of the Reserve Bank of Zimbabwe Dr. Gideon Gono, Chief Executive of Transmedia Alfred Mandere, and Permanent Secretary in the Zimbabwe Department of Information and Publicity George Charamba.