More Africa NewsZimbabwe: China suspends funding for NetOne extension project for breach of trust

October 28, 2019by myles

China has indefinitely suspended funding for NetOne’s $ 71 million expansion project. According to the Zimbabwean website which reports the information, this measure came after the government seized these investment assets, deposited in an escrow account, to obtain foreign currency. The funds have been converted into a local unit through the Zimbabwe Reserve Bank (RBZ). 

These financial movements, the news site indicates that they will complicate the cooperation agreements between the two countries, because the Chinese financial institutions involved in financing the project are not satisfied and denounce an abuse of trust and confidentiality. 

According to , an indignant government source for this situation 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 expand the company’s mobile telecommunications 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 company to record new revenues through new consumers.

Source: Agence Ecofin

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