Business, Telephony, Lesotho: Econet Wireless Group, Botswana-registered but South Africa-based, is set to acquire the controlling stake in Telecom Lesotho.

It reflects the core strategy of its now former partner to concentrate on energy operations. Both parties can look back on the successful transformation of a state-owned loss-maker into a profitable business.

Telecoms in Lesotho are set for a major change as the Botswana-registered but South Africa-based Econet Wireless Group (EWG) is set to acquire the controlling stake in Telecom Lesotho.

Seventy per cent of Telecom Lesotho is held by Mountain Kingdom Communications, a joint venture between Eskom, whose core business is energy, and EWG. Both parties acquired Lesotho Telecom seven years ago and have been successful in turning round a nationalised loss-making enterprise into a profit-making private company.

A shareholders agreement between Eskom and EWG states that if either of the parties want to sell they must sell to the other. Eskom’s decision to sell is due to its choice to focus on its core business of power generation and transmission. Econet has accepted the offer from Eskom to buy out its share of the joint venture: negotiations are being described as amicable.

Key to the success of the Lesotho Telecom in recent years has not just been the change from state to private ownership but the building up of a brand-new GSM network.

What is also emerging is that the Government of Lesotho will continue to contribute to the development of the new Econet-dominated enterprise.

• more info: www.telecom.co.ls