A Tanzania minister has assured the country’s telcos will all be listed by the end of the year, despite missing the recent deadline.
In an interview with the Wall Street Journal, deputy communication, science and technology minister January Makamba…
A Tanzania minister has assured the country’s telcos will all be listed by the end of the year, despite missing the recent deadline.
In an interview with the Wall Street Journal, deputy communication, science and technology minister January Makamba insisted that the listings would go ahead, saying the government will decide at “some point in the near future” that it has spent enough time discussing the topic with mobile operators. These talks have so far gone on for about a year.
In 2010, the Tanzanian government passed a law requiring existing telcos to list by 2013, and any new operators to do so within three years of receiving their licences. The move was aimed at improving corporate governance and disclosure as well as boosting the local economy. The listings would also enable Tanzanians to invest in the fast-growing local telecoms sector.
However, local operators – including South Africa-based Vodacom, India’s Bharti Airtel and Sweden’s Millicom International Cellular – have contested the “efficacy” of the mandatory listings, Makumba was quoted saying.
The government, which has consulted with operators on draft IPO regulations, had reportedly hoped it would reach an agreement with the telcos in time for the March 2015 deadline.
Noting that the ministry is legally required to develop regulations providing for minimum shareholding requirements and listing plans, Makamba said operators that fail to comply could face penalties such as licence cancellation.
The ministry, Vodacom, Bharti Airtel and Millicom were not immediately available for comment.
