Econet secures $500m funding facility

Econet Wireless has secured a $500mn loan facility to procure network equipment and develop its networks in Africa

The financing will support equipment supply for Econet Wireless in Zimbabwe, Lesotho and Burundi.

The South Africa-based international telecommunications group has secured the funding from Chinese multinational technology equipment supplier, ZTE and China Development Bank.

The deal will allow for supply of equipment to Econet Wireless’ operations in Zimbabwe, Lesotho and Burundi.

According to the company, some of the funds may also be routed to Liquid Telecom, its fibre optic network operator, which operates in 15 countries in Africa.

Econet Wireless also wants to develop its LTE networks as well as fifth generation networks, and some resources may be deployed towards that too.

The Chief Executive Officer of Econet Wireless Group, Tracy Mpofu said that access to this loan allowed the group to further its strategy of consolidating the convergence that is taking place within the telecommunications space in Africa, including banking, traditional voice and the ‘Internet of Things.’

Speaking of collaboration with Chinese companies, Mpofu said: “As a company, we have received a lot of support from China over the last 15 years that we would not have got from anywhere else because of the difficulties of some of our markets. We appreciate this on our own behalf and also the customers we serve.”