Africa is a busy continent for telecom deals. The latest: Indian conglomerate
Essar Global Ltd. will invest $500 million over two years in Kenya's newest mobile phone service operator, Econet Wireless Kenya Ltd. The funds will go toward setting up a network, among other purposes, reported the International Herald Tribune, citing S. Srinivasa, the East Africa director for Essar, a $50 billion company.
Working through subsidiary Essar Communications Holdings Ltd., the group in December 2007 bought 49% of South Africa-based Econet Wireless International, which in turn holds 70% of Econet Wireless Kenya Ltd.
"Kenya is the gateway for Africa for Essar," Srinivasa told the IHT, signaling the possibility of more deals to come.
In West Africa last month, mobile phone company Vodafone Group plc said it's buying a 70% stake in fixed-line and mobile operator Ghana Telecommunications Co. from the government for $900 million.
And in April, South African mobile-phone company MTN Group Ltd. said it would buy the local unit of Verizon Communications Inc. to expand its fixed-line and Internet activities. TheDeal.com says South Africa's two biggest telecommunications companies, one of which is MTN, are undergoing a consolidation as foreign investors look to gain a foothold in Africa.
CD has been tracking
global consolidation of the telecom sector, from deals in China and India to Sweden, France, the Americas, Norway and Africa. -
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