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Lucent Communications, Tanzania’s newest
multinational, strikes Congo deal
By Allan Lawa of ITV, just back from Kinshasa
2005-03-16 23:36:08
A Tanzanian firm has acquired a 50 per cent stake in a giant public
telephone company in the Democratic Republic of Congo.
The firm, Lucent Communications, concluded the deal in Kinshasa
late last week under which it will invest more than 300m dollars.
The joint venture, to be trading as Sematel, is the biggest single
investment by a Tanzania firm outside the country and will be implemented
in two phases.
In the first phase Lucent Communications will invest about 134m
dollars, company officials saidi.
Getrude Kitembo, the Congolese minister of Posts, Telephones and
Telecommunications said at a ground breaking ceremony that the joint
venture would put back to life the giant telephone company now “in
a state of constant deterioration, debasement and degradation due
to lack of investment.”
The ceremony was officiated by DRC Vice President Prof. Yerodia
Ndombasi, who is also responsible for reconstruction and development.
The minister said the partnership was a testimony of South - South
cooperation, as a viable way to overcome problems crippling efficiency
in telephone company operations for many years.
Elvis Musiba, the chairman of the Sematel board of directors, said
this investment would serve the DRC and the Great Lakes Region while
overseeing a rapid expansion of affordable land lines to low income
earners.
It would increase substantially the number of telephone lines,
charge competitive rates and interconnect different service providers,
he said.
He assured the DRC government that the firm would do everything
possible to make sure Sematel became a major provider of high quality
telecommunications infrastructure.
He paid glowing tribute to unwavering support Sematel received
from the entire government during negotiations.
The talking started when the country was still engulfed in civil
war, he pointed out.
Dr. Gideon Kaunda, an executivie from Lucent Communications, said
the project was testimony to the New Partnership for African Development
(NEPAD).
Tanzania’s Ambassador to DRC, Mohamed Maharage Juma, who
also attended the ceremony, challenged members of the Tanzania business
community to follow suit to what Lucent Communications has done.
The DRC Minister of Public Enterprises, Celestin Vunabandi asked
the Tanzanian business community to support the on-going reconstruction
of the Congo by more investments.
Potential investors would be assured of incentives including negotiable
tax rates, cheap electricity and water bills, he said.
Participatiiing in the on-going privatization of public enterprises
by entering into joint ventures or outright purchase was also open
to them, he added.
• SOURCE: GUARDIAN
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