Ghana’s opposition delays Vodafone deal until October

Vodafone may have to wait until October to receive approval for its purchase of Ghana Telecom (GT), after opposition parties sought to block the government’s deal as parliament went into summer recess.

Ghana’s opposition party believes Vodafone’s purchase offer undervalues GT’s worth

Ghana’s main opposition party, the National Democratic Congress (NDC) has criticised the £450 million (US$900 million) sale of a 70 per cent stake in the state-owned operator saying it goes against the national interest.

“Other bidders are likely to offer higher bids than Vodafone and address the socioeconomic needs of the country,” the NDC said in a statement, while one of the country’s best known economists, Nii Moi Thompson, said “We have been scammed”, following his analysis of the agreement.

However, deputy communications minister, Opare Ansah, told the press he saw nothing wrong with the purchase terms.

The proposed deal values GT at US$1.3 billion but the opposition believes the shares are worth more than that.

Nonetheless, Vodafone was convinced the acquisition would be approved, generating substantial benefits for the Ghanaian economy.

“We’re always conscious of the requirements of local markets and we’re careful to put our case with all sides,” said a spokesperson for Vodafone. “But we believe this is a good deal for Ghana and a good deal for Vodafone and are confident that ultimately it will be agreed.”

GT operates Ghana’s third largest mobile phone network under the brand ‘Onetouch’ with 1.4 million customers and a 17 per cent market share, as well as fixed-line and Internet services under the GT brand.