MIGA issued guarantees totaling $3.2 million for equity investments by Kintbury Investments Limited of the United Kingdom, and Meeco International Company Limited of Lichtenstein, in the establishment of a telephone network in Tanzania. The Agency covers Kintbury's and Meeco's investments against the risks of transfer restriction, expropriation, and war and civil disturbance.
Zantel will independently provide for the supply, installation, civil works and commissioning of state-of-the-art telecommunications services. It will be independent from Tanzania's state telephone company and the country's two main mobile telephone service providers. The main objective of granting two licenses-basic services and cellular-to Zantel is to increase Zanzibar's telephone penetration ratio from 0.6 telephones to 4.5 telephones per 100 people.
It is estimated that local companies and service providers will benefit from $2.5 million of project contracts, while on-going procurement is estimated at $500,000 per year. Over each of the first five years of operation, the project is expected to generate almost $5 million in government revenues and have a net positive impact on the country's foreign exchange.