Ghana approves Telecel acquisition of Vodafone operations in the country

The National Communications Authority (NCA) in Ghana has given Telecel approval to buy Vodafone Group Plc’s operations in the country. Vodafone Group currently owns 70% stake in Vodafone Ghana while the government has 30%.

The NCA approved the sale after Telecel submitted a revised financial and technical proposal in December 2022. The NCA had initially turned down a sale plan submitted by Vodafone Ghana in January last year as it did not meet required regulatory standards.

The NCA said that the revised financial and technical proposal demonstrated the needed capital investment to extend the deployment of 4G and launch innovative fintech solutions. The revised proposal also provided more clarity on funding required for the transaction and met the regulatory threshold.

A statement issued by the NCA, “The National Communications Authority (NCA) is pleased to announce that pursuant to the evaluation of the revised proposal from the Telecel group, it has granted approval for the transfer of the 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) held by Vodafone International Holdings B.V (the Seller) to Telecel Group (the Buyer) subject to concessions made by the Seller and representations made by the Buyer to the NCA.”

Vodafone initially acquired 70% stake of the Ghana’s state-run telco, Ghana Telecom, back in 2008, for $900 million.

Telecel Group, headed by French tycoon Hugues Mulliez, currently is operational in 30+ countries. It was founded in 1986 by the late Congolese businessman Miko Rwayitare.

Telecel is positioning itself as a key player in the new African digital revolution converging telecommunication with fintech, e-commerce, and the growing African centered tech startup space. The Group is experiencing strong growth on the continent. It has completed four transactions since 2018. In 2022, it announced the acquisition of Mattel Mauritania after acquiring 100% of the shares of the company.

Telecel plans to invest +$700 million in Africa over the next five years in the fields of communications and e-commerce.