Essar invests $2bn in Africa

Indian steel group Essar plans to invest $2 billion in up to six or seven African mobile businesses, states IT News Africa.

Essar, the minority shareholder (33%) in Vodafone Essar, one of the largest operators in India, will introduce pan-African mobile operations targeting more than 20 million African customers.

Essar also owns a 49% stake in Econet Wireless; which has set up Yu network in partnership with Essar, covering a million subscribers in Kenya.

Telecommunications operator Broadlands Networks is planning to invest $100 million to complete installation of infrastructure for its 4G network across Zimbabwe, reports All Africa.

Broadlands has so far invested $30 million to lay the foundation for its multi-service telecommunication services in Harare, Bulawayo, and Gweru and plans to complete its network roll-out by June.

The telecoms operator is currently test running its mobile and fixed telephone system on 5 000 subscribers and has capacity to connect up to 10 million subscribers.

Africa's telecom sector will have private investments of more than $70 billion by 2012, says Reuters.

During the annual African Union summit in Addis Ababa, African countries pledged to construct national fibre-optic networks with the goal of linking all cities and major towns by 2012.

"In the first two years we had $21 billion, which makes me believe by the end of the five years we will surpass very easily $70 billion," says Hamadoun Toure, secretary-general of the UN's International Telecommunications Union.