Pioneering the Future through Bold Decisions; the John Magufuli Way

By Staff Writers, Nairobi and London.

NEWS that telecom giant Bharti Airtel had agreed to end its investment row with the government of Tanzania  and has now started to honour its promise by disbursing first dividend to the government after 19 years, is another Dr. John Pombe Magufuli gain and a new master class for African leadership.

In January this year, news broke out that after a protracted discussion, the government of Tanzania and Bharti Airtel had reached a consensus that would see a free carried increase of stakes owned by the Government of Tanzania in Airtel Tanzania from 40 to 49 percent.

The move came after the reformist President of the United Republic of Tanzania, Dr. Magufuli, met with the Chairman of Bharti Airtel, Mr Sunil Mital, at State House in Dar es Salaam, whereby they held talks on the development of discussions on the disputed ownership of the Airtel Tanzania.

President Magufuli expressed his willingness to see the end of the dispute that prevented the Government to reap any revenue from Airtel Tanzania which the government claims to have contributed to the initial share capital of Airtel’s predecessor, Celtel Tanzania. “I can see good light that can make both Bharti Airtel and the Government of Tanzania swiftly move forward,” said the President in January.

President Magufuli with Mr. Mital from Airtel

For his part, the Chairman and majority shareholder of Bharti Airtel, Mr. Mital from India, had said the discussions between his firm and the Government of Tanzania were going on well, adding that Bharti Airtel was satisfied with the agreement reached.

 "I’m satisfied with the agreement reached on the issues discussed as they aim at strengthening Airtel businesses in Tanzania, bringing benefits to both parties and improving the communication services of the firm," said Mr. Mital.

Finally, on Monday 10^th June, 2019, Airtel presented to the government of Tanzania first installment of shilling 3 billion (about $1.4m) as dividend to Tanzanians, ending a 19 years drought that irked the Magufuli government. Additionally, in the deal Airtel Tanzania would pay shillings 1 billion a month for five years consecutively.

“This is a great day for all of us; we celebrate the outcome of a process that would see the government and the people of Tanzania get what they had missed for the last 19 years from a previously mismanaged state shares in Airtel,” said the President who revealed that had the negotiation failed, his government was ready to de-register Airtel in the list of lawful companies to operate in Tanzania.

The vividly joyful Airtel boss on his part insisted: “Airtel Tanzania now belongs to all of us, I urge the people of Tanzania to support it, it is their baby. My company would bury the past as all of us are victims of circumstance on this dispute, to ensure a brighter working future.”

On top of the dividend and increase in state shares, the deal would see more government representation in the Air Tanzania Board and agreement on offsetting government arrears to Airtel amounting to over shilling 900 billion ($ 400m).

                                    #What Magufuli Would Do?

The famous hash tag above is no longer relevant; the reality on the ground is #HowIsMagufuliDoingIt?

Applying home grown models to implement his reforms agenda, President Magufuli validates his management efficiency based on local content perspective for sustainable development. 

He is not only the best negotiator, but a true transformer; he turns around once loss making national firms into profitable ventures; he turned the defunct Air Tanzania into the new sky bird with eight new planes, within just three years. This is magic. Magufuli’s model.

Mr. Mital presenting a dummy cheque to Tanzanian Minister of Finance

The naivety of African Governments and infant negotiation capacities often resulted in failure to take action on shoddy investments, making African leaders always running from the risk of London arbitration courts. Magufuli is different, once he sees his right, the right of the poor masses of Tanzania, he confronts-then, the end justify the means.

The Airtel success is not Magufuli’s last one; soon he will score on the Acacia stalemate, as initial agreement has also been reached. Giant Acacia is set to pave way for a new Tanzania-Barrick owned mining firm that will see Tanzanians benefit from a 50/50 economic sharing. How is Magufuli achieving all this! 

His story resembles the story of conquering African warriors, African freedom fighters; unfortunately not many of his peers, the current breed of leaders, have the same audacity to take chances. Very unfortunate!