afrol News, 3 March - An international private equity firm focused on investing across the African continent [Emerging Capital Partners (ECP)] on Monday announced a US $20 million investment in Cellcom Telecommunications Limited, mobile telecommunications company with operations in West Africa.

The funds will be used to expand Cellcom's network and operations in Liberia as well as launch services in Guinea and Sierra Leone.

"Cellcom is the leader in the Liberian mobile telecoms market and has a very attractive business model that combines pre-paid services, low cost handsets, aggressive marketing and superior customer service," said Tom Gibian, Chief Executive Officer of ECP.

"We are confident that the company will be able to expand its operations and repeat its success in Guinea and Sierra Leone as well as new West African markets."

With 45% mobile subscriber growth rate, Africa became the world's fastest growing market for mobile telecommunications. West Africa has led the African continent in mobile telecom growth, recording 75% subscription growth in 2006 alone.

The continent is expected record an additional 50% subscriber growth by 2010.

But mobile phone penetration rates in Liberia [17%], Guinea [6%] and Sierra Leone [10%] are among the lowest on the African continent.

Cellcom has seen significant opportunity to expand capacity and coverage in these markets where demand still outstrips supply.

"ECP is well versed in the African mobile telephony industry, and we believe Cellcom has the technical and operational capability to become a leader in the Manu River sub-Region of the West African market," said Bryce Fort, Managing Director of ECP.

"The low levels of current market penetration combined with high demand make wireless
telecommunications one of the most promising sectors in West Africa."

The current investment in Cellcom is ECP's seventh in the African mobile telecom industry, with other stakes in MTN Cote d'Ivoire, Starcomms Nigeria Limited and Celtel Gabon as well as successful exits from Telecel Faso, Orascom Telecom Algeria, Celtel International, and Sonatel.

The Cellcom investment was made through ECP's US $523 million ECP Africa Fund II, the fund
established in December 2005 to capitalise on the numerous investment opportunities throughout Africa in telecom, natural resources, financial services, agribusiness, transportation, and power and water.

ECP is the first private equity firm to raise more than US $1.2 billion to invest in companies across the African continent. Its team has an eight-year track record of pan-African investing through six successful funds.

By staff writer

© afrol News

Tweet

Printable version

On the Afrol News front page now

UN will not monitor human rights in Western Sahara afrol News - The US has backed down on its demand that UN peacekeepers in Moroccan-occupied Western Sahara also shall monitor the human rights situation after Moroccan sources threatened to scale down relations with Washington. Read more

Central African Republic

Central African Republic falling apart afrol News - One month after the rebel movement Séléka took over power in the Central African Republic, unrest is spreading in the country. The new leader lacks control of his forces, which continue looting and abusing civilians. Read more

Kenya

Kenyatta secures tight victory in Kenya afrol News - The official election results in Kenya have finally been announced, and Uhuru Kenyatta managed to win the first poll round outright with a narrow 50.7 percent. But the main opponent, PM Raila Odinga, is filing a vote rigging complaint to the courts. Read more

Cape Verde Cape Verde to produce dragon fruit afrol News - Cape Verde authorities have invested large sums to diversify the arid country's agricultural sector. Now, the dragon fruit, originating in tropical America, is being introduced for the first commercial production in Africa. Read more

Egypt Even governors in Pharaonic Egypt died in their 20s afrol News - Researchers have analysed more than 200 mummies from ancient Egypt, finding that even high dignitaries were poorly nourished and had infectious diseases. The typical governor in Pharaonic Egypt died before he was 30 years old. Read more