08 November 2019

China has indefinitely suspended funding for NetOne’s US$71m expansion project, according to the Zimbabwean media.

The measure is said to have been introduced after the government seized the investment capital, deposited in an escrow account, to obtain foreign currency.

These funds have been converted into a local unit through the Zimbabwe Reserve Bank (RBZ).

It is understood these “financial movements” have complicated the cooperation agreements between the two countries, because the Chinese financial institutions currently involved in financing the project are not satisfied and have accused the company of an abuse of trust and confidentiality.

According to theindependent.co.zw, an indignant government source said: “It’s a question of principle, of trust. How can you trust a robber who has your money? If someone steals money out of your pocket, can you trust him/her on your money in the future? These are the questions the Chinese are asking themselves.”

NetOne’s expansion project was expected to broaden the company’s mobile telecom network by introducing and upgrading base stations across the country.

This operation would have not only allowed more people to access telecom services but would have above all enabled the telecom business to record extra revenues through new consumers.