Privatization of Telecom Services is Africa is litred with many failures, and sometimes, horror stories. In Tanzania, Celtel pulled out of TTCL after acquring a substantial stake (30%?). In Rwanda, Rwandatel had first to be re-possessed before finally being re-privatized - after initial investor failed to bring in the promised technology and capital. In Zambia, I understand (yet to confirm) that the 'strategic partner' even cannibalized vital elements of the core network already in place.

 

I have always had reservation on privatization of strategic infrastructure state corporations, as I did with Telkom Kenya. While Ghana Telecom attracted US$ 900 million for 70% stake (itself a matter contested by the then opposition - now Govt), TKL attracted a paltry US$ 300 million for 51%! With simple Arithmetic, one should see why TKL ought to have fetched better - assuming they were at per with GhanaTel. Intuitively, TKL should have been a superioir enterprise! Sadly, now Orange even wants GoK to refund $385m; if that was to happen, essentially TKL would have been sold for nothing - yes, absolutely ZERO! Yet what did we see for it: the sending home of 19,000 strong workforce with 'death-shakes' (not hand-shakes)!

 

What is going on here? Read further:- http://www.nation.co.ke/magazines/smartcompany/Lights%20dim%20on%20listing%20as%20Telkom%20misses%20targets%20/-/1226/906392/-/3urxv8/-/index.html.

 

Warm rgrds,

Shem