Sale of Vodafone Ghana: Telecel earmarks $500 million for investment

Africa-focused telecom company, Telecel Group, which is seeking to takeover Vodafone Ghana is expected to invest substantial amount of money into the company if the deal is approved.

“It is expected that Telecel Group will inject the much-needed investment into Vodafone’s operations. It has provisioned an investment of 500 million USD, to service the service provider’s debt while providing capital expenditure to support the technology development and innovation.” a source close to the deal has revealed.

According to the source, this would be for both mobile telephone and Fixed Broadband (FBB) services with an improved customer experience at the right price point.

“Network availability and reliability are important to seamless service and the investment to be provided by Telecel Group would support the network infrastructure and architecture for existing and new Vodafone Ghana customers, including consumers, corporates, government, and Small and Medium Size Enterprises,” the source said.

Media reports last week indicates Vodafone Group’s intention to exit Ghana’s telecom market is to enable the service provider to re-focus on its key markets.

 According to the report, the British telecommunication giant has agreed to offload 70 percent of its stake in Ghana’s operation to Africa-focused telecom company, Telecel Group, subject to regulatory approval by the Government of Ghana through the Ministry of Communications.

When successfully approved, it will still have the Government of Ghana maintaining its 30 per cent stake in the business.

It was also revealed that the transaction has been fully financed by Telecel.

A potential project of the sale of Towers could happen in the future to additionally develop the infrastructure of the company, as part of a bigger plan for infrastructure sharing to help commercial competitiveness in Ghana.

According to its website, Telecel is an Africa-focused telecommunication service provider and leader in the transformation of digital services.

It prides itself as a market disruptor with a wealth of experience from shareholders who have impacted the global retail industry and are poised to apply the same skills to impact positively the continent’s telecom market.

Not to mention that according to sources Telecel, in general, is close to large groups like Orange, Etisalat, Convergence Partners, Digital 9, and others of the same tier, and they sometimes work in partnership with them.

The Telecel Group operates in four different business lines within the telecom and technology industry. These include Telecel Mobile, which owns and operates several mobile operators in Africa and Europe.

Telecel Global Services provides wholesale, enterprise, and digital security services to telecom operators and enterprises worldwide, while Telecel Play is a digital platform that is digitising mobile users’ experience.

BY TIMES REPORTER

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