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Uganda gets $120m ICT loan

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 29 Jan 2007

Uganda is to receive a $120 million loan from China this year for ICT development, reports the Whittaker Group in its latest Uganda Update newsletter.

Following a November 2006 summit between China and African heads of state, Asia's fastest-growing economy announced it would invest in various key sectors in the North African country, including power-generation, oil and ICT.

The report says the loan will be aimed at developing the national ICT infrastructure, which is expected to facilitate faster telecoms services at lower rates, "enabling economic activity throughout the country, including in rural areas".

The Whittaker Group notes the new national backbone will feed into the existing fibre optic link operated by mobile companies MTN and Uganda Telecom.

This is part of efforts by Uganda to halve poverty by 2010 and accelerate economic growth, following president Yoweri Museveni's predictions that the country can achieve First World economic growth rates in 10 years. The Whittaker Group reports that Museveni alluded to levels of 11% annual economic expansion - similar to those of China and Vietnam.

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