The private equity group, Emerging Capital Partners (ECP) has announced a US$20 million investment in Cellcom, a mobile telecommunications company with operations in West Africa. The funds will be used to expand Cellcom's network and operations in Liberia and launch service in Guinea and Sierra Leone.
"Cellcom is the leader in the Liberian mobile telecoms market and has a very attractive business model that combines pre-paid services, low cost handsets, aggressive marketing and superior customer service," said Tom Gibian, chief executive officer of ECP. "We are confident that the company will be able to expand its operations and repeat its success in Guinea and Sierra Leone as well as new West African markets."
The mobile phone penetration rates in Liberia, Guinea and Sierra Leone are among the lowest on the African continent at around 17 percent, 6 percent and 10 percent respectively.
"ECP is well versed in the African mobile telephony industry, and we believe Cellcom has the technical and operational capability to become a leader in the Manu River sub-Region of the West African market," said Bryce Fort, managing director of ECP. "The low levels of current market penetration combined with high demand make wireless telecommunications one of the most promising sectors in West Africa."
This investment in Cellcom is ECP's seventh in the African mobile telecom industry. This includes current stakes in MTN Cote d'Ivoire, Starcomms Nigeria Limited and Celtel Gabon as well as successful exits from Telecel Faso, Orascom Telecom Algeria, Celtel International, and Sonatel.
The Cellcom investment was made through ECP's US$523 million ECP Africa Fund II. The fund was established in December 2005 to capitalize on the numerous investment opportunities throughout Africa in sectors such as telecom, natural resources, financial services, agribusiness, transportation, and power and water.
Posted to the site on 3rd March 2008
Posted to: www.cellular-news.com/story/29675.php