According to Dakar Times, Bharti Airtel, the largest Indian mobile phone company by subscribers, is in talks to buy the African assets of the Kuwaiti telecom company Zain for about $10.7 billion.
The two companies said in separate statements recently that they are in exclusive talks until March 25 about the transaction. The potential deal does not include Zain’s assets in Morocco and Sudan, and is subject to due diligence and regulatory approval, they said. (Editor's note: "Due diligence and regulatory approval" seem to be terms of art in Africa. See previous post.)
Meanwhile, Abdourahim Agne, Senegal's telecommunications minister, has confirmed that the Seventh Annual West & Central Africa Com Congress will take place in Dakar on June 16 and 17, 2010.
West & Central Africa Com offers operators (fixed, mobile, wireless), ISPs, regulators, investors and vendors from the region to debate the future of telecommunications in their markets and to meet their peers. After two years during which the congress was held in Abuja, Nigeria, it is coming back to Senegal.
Monday, February 22, 2010
Thursday, February 11, 2010
Millicom: Good for the Wades or good for Senegal?
Senegal's infrastructure minister Karim Wade was reportedly shaking down the American cell phone company Millicom International Cellular, to the tune of $200 million--no small change anywhere and especially Senegal.
But that was according to the Business Insider website (www.businessinsider.com). Titled "The Joy Of Doing Business In Africa: How Senegalese Politicians Tried To Shake Down Millicom For $200 Million," the article seemed to rely largely upon the accounts of Millicom's executives, especialy CEO Mark Beuls, who met with Karim Wade and another time with Thierno Ousmane Sy, advisor to president Abdoulaye Wade, father of Karim Wade.
The Senegalese administration's response, which has some resonance with our Senegalese contacts, is that Senegal's officials were simply grinding for a better deal. The original Millicom license was given in 1998 at a cost of only $100,000. Even at that time, before the allure of the African market, licenses were fetching much more in Africa... The matter is now in arbitration brought by Millcom.
Would the Wades have pocketed some or all of the money? Who know: but $200 million is a lot to hide. If it was intended for the treasury it is a different matter. Government officials have a duty to get the best deal for their people.
The Business Insider story was heavy on the angle of corruption in Africa making business difficult. But if Americans can't dig in and work the deals there, well, somebody else certainly will...
But that was according to the Business Insider website (www.businessinsider.com). Titled "The Joy Of Doing Business In Africa: How Senegalese Politicians Tried To Shake Down Millicom For $200 Million," the article seemed to rely largely upon the accounts of Millicom's executives, especialy CEO Mark Beuls, who met with Karim Wade and another time with Thierno Ousmane Sy, advisor to president Abdoulaye Wade, father of Karim Wade.
The Senegalese administration's response, which has some resonance with our Senegalese contacts, is that Senegal's officials were simply grinding for a better deal. The original Millicom license was given in 1998 at a cost of only $100,000. Even at that time, before the allure of the African market, licenses were fetching much more in Africa... The matter is now in arbitration brought by Millcom.
Would the Wades have pocketed some or all of the money? Who know: but $200 million is a lot to hide. If it was intended for the treasury it is a different matter. Government officials have a duty to get the best deal for their people.
The Business Insider story was heavy on the angle of corruption in Africa making business difficult. But if Americans can't dig in and work the deals there, well, somebody else certainly will...
Friday, February 5, 2010
Iran promises big petroleum storage project.
Iran's economic relations with Senegal will now include an announced 40 million cubic meter petroleum storage effort. The effort, projected to create 500 Senegalese jobs, was announced by Iran's ambassador to Senegal yesterday.
According to the announcement, the capacity of the storage will exceed Senegal's petroleum storage needs, allowing it to broker the surplus to surrounding countries.
The promised effort builds on the SenIran motor vehicle factory in Thiès. Actual results of that joint effort so far have been less than impressive, with few cars and public transit vehicles actually coming off line... Big announcements are the easy part. We will be watching for actual results.
According to the announcement, the capacity of the storage will exceed Senegal's petroleum storage needs, allowing it to broker the surplus to surrounding countries.
The promised effort builds on the SenIran motor vehicle factory in Thiès. Actual results of that joint effort so far have been less than impressive, with few cars and public transit vehicles actually coming off line... Big announcements are the easy part. We will be watching for actual results.
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