This section features background information and resources relevant to the current research theme. It includes resources produced by WDR and external sources and is organised by regions and topics. An archive of resources recommended in previous research cycles is also available along with news from the WDR/Intelecon Regulatory News Service.
Ghana: Vodafone Acquires Ghana Telecom Stake Print E-mail
Thursday, 03 July 2008
Vodafone has paid US$ 900 million for 70% of Ghana Telecom (GT).

The sale still requires parliamentary approval. Vodafone spokesperson Simon Gordon said approval is expected by the end of the third quarter. The government of Ghana retains 30% of GT. Ghana's Information Minister Stephen Asamoah-Boateng said that the government has decided to sell GT shares on the Ghana Stock Exchange.

Vodafone believes that mobile penetration in Ghana is low, at 35%. Ghana has a population of 24 million and added around 2.7 million mobile subscribers in 2007. GT had 1.4 million mobile customers at the end of March, a 17% market share. It is also Ghana's largest fixed-line operator.

The main parliamentary opposition party, the National Democratic Congress (NDC), criticized the process leading to the Vodafone deal. Haruna Iddrisu of the NDC said the price paid by Vodafone was too low.

"It is our belief that the value of GT and all its assets should not be less than $1.5 billion," Iddrisu said.

Iddrisu says that the government negotiated exclusively with Vodafone without considering competing bids.

"We are aware of the government's desperate need for cash to finance a gaping budget deficit. However, it is important to advise the government to take into serious consideration the supreme national interest," Iddrisu said.

In 2006, Ghana's government attempted to find an investor in GT. France Telecom submitted the highest bid -- US$ 550 million for a 60% stake. The government said that France Telecom’s bid did not meet its requirements and suspended the sale.

Source: Reuters - WDR/Intelecon Regulatory News.