Mobile, Acquisitions, Ghana, Africa: The Zain Group – the former MTC Group – is now operating a global footprint standing at 22 countries: its subsidiary Celtel International has acquired 75% of Western Telesystems Ltd (Westel) from the Government of Ghana for US$ 120 million.

The Government of Ghana will remain a shareholder in Westel with a 25% holding through the Ghana National Petroleum Corporation. The transaction is currently subject to standard approvals and authorisations but is expected to conclude quickly. Westel is the second national operator in Ghana and is licensed to provide fixed and mobile (GSM) telecoms services.

The Zain Group as a whole is aiming to launch enhanced telecom services nationwide in the first half of 2008. Dr Saad Al Barrak, Zain’s CEO, commented: “We are very excited to enter Ghana, one of the most important markets in Africa. We look forward to offering Ghanaians the quality telecommunications services which we provide in all the countries in which we operate. Based on our pan-African experience we are confident that the increased competition in telecommunications will benefit the people of Ghana and support the already robust national economy of the country.”

The Honourable Minister of Communications of Ghana, Dr Benjamin Aggrey Ntim said: “The Government of Ghana is delighted to welcome a world class telecommunications operator such as Celtel to Ghana, and we look forward to working together as partners. We are also very pleased to announce that the parties have agreed to list a portion of the company’s shares in the future on Ghana’s public stock exchange for the benefit of Ghanaians.” Celtel will be investing millions of dollars in a state-of-the art telecoms network and associated services to bring telecoms services to more than 24 million customers in 15 countries across the continent now that Ghana has joined the portfolio.

Westel’s current management and staff, who have worked under challenging circumstances to date, will play an important role in taking the company forward. The company also looks forward to promoting Ghana as a gateway to West Africa through its One Network, the world’s first borderless network. This offers Celtel’s customers the opportunity to move freely across geographical borders using the same services they would access in their home country, and to make calls without roaming surcharges and without having to pay to receive incoming calls and messages.

The service also permits customers to buy and top up with local airtime when they visit other countries in which One Network is operational. Celtel’s One Network service is currently operational for 160 million people across six nations in East and Central Africa. Ghana has a fast-growing and attractive telecoms market displaying a rapid growth in mobile subscribers in the last twelve months of approximately 56% while mobile penetration, relatively low at around 28%, offers significant growth prospects.