Ghana buys AirtelTigo for a dollar
Ghana’s Minister of Communication and Digitalisation, Ursula Owusu-Ekuful says the acquisition of AirtelTigo by the government is a step in the right direction as it adds to the growing portfolio of digital infrastructure assets being utilised by the government. She joins CNBC Africa for more.
Tue, 20 Apr 2021 12:02:16 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The government of Ghana acquires AirtelTigo for a symbolic $1, emphasizing the strategic importance of safeguarding digital infrastructure assets and supporting the telecom sector amidst the COVID-19 pandemic.
- Government to provide capital injection and explore long-term strategies, including partnerships and diversification, to drive value and competitiveness in the telecom industry.
- Positive feedback from communication players on government's ownership stake, with initiatives like infrastructure sharing and national roaming set to enhance connectivity and service delivery for Ghanaian subscribers.
The Government of Ghana recently made a strategic move by acquiring AirtelTigo, a telecommunications company, for a nominal fee of $1. The Minister for Communication and Digitalisation, Ursula Owusu-Ekuful, explained that the decision to take over the company was prompted by the shareholders' plan to exit the Ghanaian market due to the impact of the COVID-19 pandemic. This acquisition represents a significant step in expanding the government's digital infrastructure assets and safeguarding the jobs and livelihoods associated with the telecom sector in Ghana.
Owusu-Ekuful highlighted the importance of maintaining AirtelTigo as a going concern and stated that the government would provide the necessary capital injection to support the company's operations. While the initial acquisition cost was minimal, she emphasized that the assets of AirtelTigo are valued at over a billion dollars, indicating the government's commitment to driving value and competitiveness in the telecom industry.
The government's long-term plan for AirtelTigo involves exploring various options, including potential partnerships, diversification, and integration into the country's digital infrastructure. By leveraging the company's assets and resources, the government aims to enhance the telecom sector's dynamics and stimulate competition among industry players.
In response to concerns about potential conflicts of interest, Owusu-Ekuful defended the government's ownership stake, comparing it to the government's involvement in other key infrastructure sectors such as roads, electricity, and water services. She reassured that the government would regulate the telecom sector fairly to ensure a level playing field for all participants.
The move to acquire AirtelTigo has received positive feedback from other communication players in the industry. The government is actively promoting infrastructure sharing and national roaming policies to enhance connectivity and service delivery across the country. By fostering collaboration and innovation within the telecom sector, the government aims to benefit Ghanaian subscribers and drive growth in the industry.
Overall, the acquisition of AirtelTigo by the Ghanaian government signifies a strategic investment in the country's digital future. By taking proactive steps to safeguard essential infrastructure assets and promote competition, the government is laying the groundwork for a more vibrant and dynamic telecom sector in Ghana.