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Vodafone’s 70% sale doesn't affect Ghana’s economic outlook.

Vodafone’s 70% sale doesn't affect Ghana’s economic outlook.
Mr. Yoofi Grant, CEO for the Ghana Investment Promotion Centre (GIPC).

Ghana Investment Promotion Centre (GIPC) C.E.O, Mr. Yoofi Grant says the sale of 70% of Vodafone stake in Ghana will have no impact on Ghana's economic prospects. 

Vodafone's decision, according to Yoofi Grant, isn't a problem since it's the only telecommunications provider making the choice.

He told journalists in an interview after the GIPC signed a Memorandum of Understanding (MoU) with the Ghana Stock Exchange (GSE) in Accra; 'If you were to tell me all the foreign companies were exiting, that will be a difficult story. But if one, for a strategic reason decides that this is not the market that, they want to be in, it doesn't create a disincentive.

He added "Like I did say, these are two different opportunities. Foreign Direct Investment is directly investing in business opportunities in the country. Foreign portfolio investors then come and list their companies to invest in and create opportunities for other investors for any exiting companies."

Yoofi Grant went on to say that firms come in and out of Ghana all the time, so it wouldn't be surprising if one of them decided to leave the country at some point and that single conduct does not reflect a negative image of the nation.

"So, they are not the same thing. Vodafone was never listed on the Ghana Stock Exchange. And for, MTN it is. Companies come and go all the time. If you are to say that one signal sums up the whole market.”

Despite the government's initial objection of Telecel's acquisition of a 70% ownership in Vodafone Ghana, the company has declared that it is willing to re-engage with the government.

To obtain a 70% ownership in Vodafone Ghana, Telecel Group has signed a Sale and Purchase Agreement (SPA), which is presently awaiting regulatory clearance.

In a statement by the telecom company, it said, “Telecel Group and Vodafone have been in touch with Ghana's Ministry for Communications and the National Communications Authority to finalize all the regulatory requirements related to this transaction."

"We have received their responses which have not granted the approvals yet and Telecel is willing to re-engage soon after putting together the necessary clarifications," it further stated.

Telecel Group and its partners are providing all of the financing for the transaction. However, Telecel has clarified that the purchase money does not include the sale of Vodafone Ghana Towers.

"Telecel hopes to successfully conclude this transaction and looks forward to engaging with staff and customers, who are important to the business."

Ghana's economic environment, according to the corporation, is ideal for its business models and was a significant enabler in reaching an agreement with Vodafone.

It further disclosed that "Telecel Group has already made investments in Ghana as part of the Africa Startup Initiative Program `ASIP.', and it intends to spend around 500 million USD in the first three years to expand and refinance Vodafone's network across the country.”

Source: ghananews.hrforum.uk

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