World Dialogue on Regulation

Western Telesystems (WESTEL) is now a fully owned state entity.

This follows the government's acquisition of a two-thirds equity share of ACG Telesystems Ghana through the Ghana National Petroleum Company (GNPC). Previously, the state owned one-third of the company. The move makes the government the sole shareholder of the nation's two fixed-line telecommunications providers.

The government also recently bought back the 30% stake in Ghana Telecommunications Company (Ghana Telecom) it sold to Telekom Malaysia. Reports indicate that the total amount paid by the government for both acquisitions was over 150m dollars, but the sector minister, Albert Kan-Dapaah, would not confirm that figure.

WESTEL, which was licensed to become the second national fixed-line operator to break the monopoly of Ghana Telecom, in the past six years has rolled out fewer than 3,000 lines, not meeting its target of about 100,000 lines per year.

Mr Kan-Dapaah said it was the intention of the GNPC to either sell off a majority of its shares to a strategic investor or float it on the Ghana Stock Exchange. On the shares of Ghana Telecom, he said, "The government has plans to sell, on commercial terms 51% of the total shares to a strategic investor."

The Communications Minister said the government intended to appoint a transactions adviser to guide it in this process. When the minister was asked why the government had refused to float the shares of the company on the GSE, he replied, "We know the public is interested but we may float about 30 per cent of the remaining 49 per cent to the public."

Source: Daily Graphic and the BBC -  WDR/Intelecon Regulatory News