Algeria threatens $9bn telecoms deal

A move by the Algerian government to exercise its right of first refusal to purchase the local telecommunications unit of Orascom Telecom could scupper a $9 billion deal between Orascom and MTN, reports Digital Journal.

The Algerian telecoms minister Hamid Bessalah says the government, under a law adopted last year, has the right of first refusal to buy a controlling stake in the Algerian subsidiary.

Orascom Telecom is in talks to sell some or all of its assets to MTN in a move that could turn MTN into the world's third-biggest mobile phone service provider, but this twist could upset the $9 billion deal as the Algerian unit in Orascom's most attractive asset, bringing in 37% of the company's revenue.

In the past five years, the mobile communications market encompassing Botswana, Namibia, Zambia and Zimbabwe has grown by 10%, states TMCnet.

This is according to a study conducted by Frost & Sullivan, revealing that the highest mobile penetration rate is in Botswana, which is over 100%.

However, Zimbabwe has much lower mobile penetration rates with a high demand for voice services. It has recently emerged from a record-breaking hyperinflation, resulting in degraded network infrastructure as little investment was made.

Kenya has built a digital centre at the Mundeku Village in western Kenya as part of a skills upliftment initiative, says EcontentMag.

The Mundeku Digital Village is the brainchild of Gibson Shiraku. "With this facility, the children of this area will become skilled in ICT and will not have to travel to Nairobi or other towns and cities to acquire such skills.”

Despite Kenya having the highest Internet penetration rates in the region and one of the highest in Africa, only 10% of the population is ICT literate.