China Eximbank provides EUR 200 million loan to ZTE to set up South Sudan's telecommunication network

According to a representative from ZTE's South Sudan subsidiary, China Eximbank provided an EUR 200 million loan to ZTE in 2009 in order to set up South Sudan's telecommunication network (苏丹电信) and popularize the use of mobile phones in South Sudan.

Additional details

1. Aztan law firm in Sudan notes on its website that it advised ZTE on an EUR 200 million loan that it finalized with MTN Sudan in 2012. This loan appears to have supported a telecommunications network expansion project in South Sudan. The Chinese name of the project is 中兴通讯MTN扩容项目. However, it is unclear if this is the same loan as the EUR 200 million loan referenced by ZTE's subsidiary in South Sudan. It is possible that China Eximbank provided an export seller's credit to ZTE, which it in turn used the proceeds of the loan to provide vendor financing (i.e a supplier's credit) to MTN Sudan Company Limited (which later split into MTN Sudan and MTN South Sudan). MTN acknowledges in its 2014 bond prospectus that "we have made substantial equipment purchases from, and have entered into vendor financing arrangements with, Ericsson, Huawei and ZTE in certain jurisdictions." In the same bond prospectus, MTN discloses that one of its subsidiaries -- MTN Sudan Company Limited -- received euro-denominated vendor financing in 2012. However, AidData has not yet independently confirmed that China Eximbank provided an export seller's credit to ZTE which it then on-lent to MTN for its activities in South Sudan. 2. This loan is omitted from the SAIS-CARI database of Chinese loan commitments that was released in July 2020. 2. South Sudan state was founded on July 9, 2011. This loan was made to the Southern Sudan Autonomous Region.

Number of official sources

5

Number of total sources

9