Ghana’s National Communications Authority (NCA) has granted conditional approval for Vodafone International Holdings to sell its 70% stake in Vodafone Ghana to Telecel Group.
In a statement, the regulator explained it had approved the sale after Telecel submitted a revised financial and technical proposal in December, which demonstrated the capital investment required ‘to extend the deployment of 4G and launch innovative fintech solutions’.
Having rejected an initial sale plan submitted by Vodafone Ghana in January 2022, due to concerns Telecel lacked the required technical and financial resources, the NCA stated Telecel had since improved its ‘overall governance and management team’ and showed ‘firm commitments’ towards meeting the regulatory threshold for the transaction.
The regulator said it will work with the companies to complete all outstanding regulatory requirements, to ensure a smooth transition as well as continuity of service delivery, improved choice for consumers and competition within the industry.
Vodafone entered Ghana in 2008 when it paid the government USD900 million for 70% of national PTO Ghana Telecommunications.
Since then, the company has struggled to compete with dominant market leader MTN, claiming an estimated 18.5% of the country’s mobile subscriptions on 30 September 2022, compared with its rival’s 64.4%. The state retains a 30% holding in the business.
