Ghana Telecom sale was strategic – Bawumia

Vice President Dr. Mahamudu Bawumia has indicated that former President John Agyekum Kufuor has been vindicated for selling 70 percent shares of Ghana Telecommunications Company Limited (Ghana Telecom) to Vodafone.

Delivering the keynote address at the 10th anniversary of Vodafone Ghana Limited on Wednesday, July 18 at the Marriot Hotel in Accra, Dr. Bawumia, who was appointed to the Ghana Telecom Board by former President Kufuor in 2008, said Vodafone Ghana has been successful over the last 10 years “because of one visionary individual, Kufuor.”

Agreement

Vodafone agreed in July 2008 to acquire a 70 percent stake in Ghana Telecom from the government of Ghana for a total consideration of $900 million (£452 million) on a debt-free, cash-free basis.

The deal implied total enterprise value for Ghana Telecom of approximately $1.3 billion (£646 million), with the government retaining 30 percent stake in the company.

At the time, the move generated intense political debate, with critics arguing that the deal was not in the best interest of Ghana, as some Ghanaian workers risked being sacked.

But Dr. Bawumia, who played a major role in the erstwhile Kufuor administration, having served as Deputy Governor of the Bank of Ghana, said the former President’s decision has today been justified with the success of Vodafone in Ghana.

According to Dr. Bawumia, “Today, he (Kufuor) has been totally vindicated.”

He noted that Mr. Kufuor was very emphatic that it was better to own 30 percent of something than to own a 100 percent of nothing.


Vice President Dr. Mahamudu Bawumia speaking at the event

The Vice President reiterated that the Akufo-Addo-led New Patriotic Party (NPP) administration shall continue to create an enabling environment for telcos in Ghana to succeed, adding that the operations of telecommunications companies in Ghana are crucial to the development of the country.

Ranking

Vodafone Ghana remains the second largest telecommunications company in Ghana, according to the National Communications Authority (NCA) rankings.

Its mobile voice subscribers increased from 7,900,534 to 7,976,348 at the end of April 2016, representing a percentage increase of 0.96 percent.

Vodafone’s market share as at April 2016 stood at 21.92 percent, according to a market survey report by NCA.

The company has over the last 10 years contributed immensely to the socio-economic development of Ghana, rolling out several innovative telecom packages and social initiatives such Vodafone Icon, Vodafone Ghana Music Awards, Vodafone Healthline, among others, aimed at impacting the lives of ordinary Ghanaians aside tax contributions to government and job creation.

Ex-President Kufuor, on his part, explained that, indeed, he has been vindicated in the sale of the shares of the company, saying “Within the past 10 years, I believe the step we took has been vindicated.”

“I am very, very grateful that the management of Vodafone remembered me. The cause has been justified and the future is also clear.”

“I am very proud of what the company has been able to achieve over the last 10 years.”

Float Shares

The former President, therefore, urged Vodafone Ghana to float some of its shares on the Ghana Stock Exchange (GSE) to enable Ghanaians own a part of the company.

Assurances

The Chief Executive Officer (CEO) of Vodafone Ghana Limited, Yolanda Cuba, assured government and the people of Ghana that the company shall remain committed to the country, saying “we are confident that we will be here with you every second along the way.”

“A new dawn has been ushered in as the company looks to another decade ahead, it’s a dawn that offers our customers unmatched customer experiences,” she indicated.

Lives transformation

Minister of Communications, Ursula Owusu-Ekuful, thanked Vodafone Ghana for transforming the lives of ordinary Ghanaians over the past 10 years through its Corporate Social Responsibility (CSR) initiatives.

She expressed profound appreciation to former President Kufuor for taking the bold decision to sell some of the shares of Ghana Telecom to Vodafone and liberalizing Ghana’s telecommunications industry.

The liberalization of the sector, according to the Minister, led to increase in demand of telecom services in the country.

Moving forward, Mrs. Owusu-Ekuful noted that Ghana has no choice than to leverage on technology to transform its economy.