China Unicom Seals XAF280 Billion Deal to Expand Cameroon's Telecom Industry

By Emmanuel Tumanjong

Special to DOW JONES NEWSWIRES

YAOUNDE, Cameroon--China United Network Communications Corp. and state-run Cameroon Telecommunications, or Camtel, signed an agreement Wednesday that will involve deploying a 5,917-kilometer-long undersea cable between Brazil and Cameroon, aimed at expanding the West African nation's telecommunications capability.

The 280 billion Central African francs ($487 million) contract was sealed by China Unicom Vice Chairman Yimin Lu and Camtel General Manager David Nkoto Emane.

Camtel will buy broadband technology and equipment from China Unicom through its strategic partner Huawei Marine Networks. Huawei Marine Networks will build the landing station in Cameroon and Spain's Telefonica will construct the Brazilian hub.

Eximbank China will finance 85% of the project via a loan to the Cameroon government, with the government financing the rest, Cameroon's minister of telecommunication, Lisette Libom Lilikeng, told Dow Jones Newswires Thursday.

"This investment permits us to transform Cameroon into a hub of mobile telephone and broadband in the Central African sub-region," said Mr. Emane.

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(END) Dow Jones Newswires

October 15, 2015 10:15 ET (14:15 GMT)

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