The company also cancelled $407 million of debt owed to it by Airtel Tanzania as part of the the settlement, Kabudi said.
India’s Bharti Airtel has agreed to pay 60 billion shillings ($26 million) over five years and cancel debt to resolve a dispute over ownership of its Airtel Tanzaniaunit, the Tanzanian government said on Monday.
Tanzania’s minister for foreign affairs and east Africa cooperation, Palamagamba Kabudi, announced the deal at a ceremony to receive a three-month batch of monthly payments worth 1 billion shillings each due from April this year.
The company also cancelled $407 million of debt owed to it by Tanzania as part of the the settlement, Kabudi said.
The company rejected the claim, saying it had complied with regulatory approvals when it acquired a 60% stake in the firm.
After prolonged negotiations the two sides in January signed a settlement that included Bharti Airtel agreeing to increase the government’s stake in the company from 40% to 49%.
The company Executive Chairman Sunil Bharti Mittal said he hoped would the deal would “give a fresh start to the company.”