Telecel Group has officially been given the green light by the National Communications Authority (NCA) to purchase Vodafone’s operations in Ghana.
As a result of the acquisition, Telecel will now be the majority shareholder in the Ghana Telecommunications Company, holding a 70% stake.
Telecel, a telecom company operating mainly in Africa, has been active in countries like Gabon, Equatorial Guinea, DR Congo, and Central African Republic.
The company is now looking add the Ghanaian telecoms market to its extensive portfolio.
Vodafone’s acquisition of a 70% stake in Ghana Telecommunication Co. for $900 million in 2008 has seemingly not reaped the rewards the company envisioned.
In Ghana, Vodafone lags behind MTN having 13.93% of the market share whereas in South Africa it has a 41% market control.
MTN Ghana currently lays claim to the number one spot in terms of mobile data subscriptions and 4G data operations in the country – holding 69.73% of the market share, per the NCA.
Vodafone’s recent announcement of massive layoffs in the UK is a tell-tale sign that the telecom company is facing challenges.
Pulling out of the Ghanaian market let’s them focus resources on their more profitable markets
Telecel’s acquisition, however, could have a positive impact on Ghana’s telecommunications industry.
As a new company in the Ghanaian market, Telecel might shake up some things in the industry and possibly seek to give MTN some competition.