Uganda to see improved ICT infrastructure
20 October 2009
Telecommunications firm MTN has been given a loan of $100 million (£60.8 million) to improve the country's ICT network.
MTN's chief executive officer Themba Kumalo was quoted by the Monitor as saying the money would be used principally to create proper physical infrastructure to ensure quality and capacity.
South African investment bank ABSA Capital coordinated the joint corporate finance initiative - which was the first of its kind to see the participation of local banks.
In addition to Uganda-based DFCU Bank, lenders included Kenya Commercial Bank, Barclays, Ecobank, Stanbic bank and Standard Chartered.
Reporting on the event, Monitor journalist Walter Wafula called the deal "an indication that the economy has the potential to support costly public projects".
Mr Kumalo's also said the loan reflected a strong confidence by MTN in Uganda financial position - and a faith in the company by the banks.
According to the International Telecommunications Union, Uganda is the first country on the continent to see mobile subscribers overtake fixed-line users and has what it takes to become "a unique laboratory for the development of wireless internet".