South African-headquartered telecommunications group Econet Wireless has acquired 65% of Burundian cellular operator ST Cellular.
While the group says the terms and conditions of the deal are confidential, it adds that the planned network expansion will probably be one of the single largest foreign direct investments in Burundi.
"The expansion of the network will not only result in more customers being added to the network but also result in new innovative and uniquely branded products and services being introduced in Burundi," says Econet director Zachary Wazara.
"Our investment will also open further direct job-creating opportunities as well as many in related downstream industries and service sectors in the country."
ST Cellular, formerly Spacetel Burundi, is one of four GSM operators in the country, with a combined subscriber base of about 160 000, or about 2.3% of the population of seven million.
Wazara says that, given the low teledensity in Burundi, Econet considers the country to offer considerable potential.
"The investment in Burundi is part of our expansion strategy to invest and grow in targeted emerging markets in Africa and beyond, and we identified Burundi as one such market that will benefit from our investment in telecommunications," he adds.
New Zealand
At the same time, the group says $36 million worth of network equipment from Huawei China is expected to arrive in New Zealand today in the wake of its decision to accelerate the roll-out of its 3G network in Auckland.
"After last week`s announcement by the Commerce Commission of its intention to review the mobile sector, Econet took the decision to accelerate the roll-out of the Auckland section of its 3G mobile network," says chief projects director Tex Edwards.
"Our site acquisition team has been active all year, but we can now feel comfortable expediting our infrastructure plans."
Econet Wireless says it has begun building its New Zealand network with an initial focus on the Auckland business district pending a national roll-out programme once outstanding regulatory issues have been resolved.
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