Vodafone clinched second major deal in Africa by buying 70 per cent stake in Ghana Telecom for $900m (£454m). The Ghana government is likely to retain 30 per cent stake. The Ghanaian group has been valued at $1.3bn. Ghana Telecom is country’s third largest mobile operator. It holds 90 per cent of retail broadband market and is the biggest provider of fixed line in Ghana.

Vodafone is pursuing its policy of expansion in emerging economies. The domestic mobile market has already saturated. The low penetration of mobile in Ghana will provide very good prospects of business growth for Vodafone. 50% of Ghana’s 24 million population is below 25 years of age. It recorded an impressive GDP growth of 6.3 per cent and the recent oil field discoveries have provided impetus to its development activities.

Ghana Telecom will expand its network with investment of $500m in infrastructure in next five years, while targeting an increase of 8 per cent in mobile market share from existing 17 per cent.

Arun Sarin, chief executive of Vodafone, described Ghana as the most attractive market in Africa and hoped that Vodafone’s investment will generate substantial benefits for Ghanaian economy and Vodafone. He is delighted to work in partnership with the government of Ghana. Vodafone has the vast base of 37 million customers across eight countries in Africa.

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