Econet buys Burundi cell stake

Econet buys Burundi cell stake

• Econet increased customers by 65% in 2005

• Econet pays out US$87,5m for Altech

• Masiyiwa: God will heal Zimbabwe in his own time

• Econet bosses held on forex charges

• Econet Wireless' 3G coming slowly

• Altech buys 50 percent stake in Econet

• Moyo's bizarre bid to shut down Econet

• Court strikes down telecoms law

• Mugabe in bid to close Econet

• Strive Masiyiwa, building of empire

• Africa's Bill Gates

• Masiyiwa's wings clipped in Nigeria

By Staff Reporter

ZIMBABWE'S Econet Wireless has acquired a 65% stake in ST Cellular of Burundi, one of four licensed operators in the central African country, officials said on Thursday.

"The investment in Burundi is part of our expansion strategy to invest and grow in targeted emerging markets in Africa and beyond," Zachary Wazara, Econet's executive director, said in a statement issued from South Africa.

"We have identified Burundi as one such market that will benefit our investment in the telecommunications," he said.

"Our investment will open further direct job-creating opportunities as well as many in related downstream industries and the service sector in the country."

Although Econet is listed on the Zimbabwean Stock Exchange, it has used proceeds from South Africa to expand its operations across the globe.

Econet says it plans to expand the mobile network and increase the subscriber base to at least 200 000, up from the current 50 000.

Burundi has four GSM operators with a combined subscriber base of just around 160 000 or a tele-density of just 2.2%, Wazara said.

"We are encouraged by efforts being made by the government of Burundi to encourage foreign investment ... which is critical to the economic regeneration and development of the country, which has had its fair challenges," Wazara said.

Burundi is struggling to emerge from a 12-year civil war pitting rebel groups from the country's Hutu majority against a national army until recently dominated by Tutsis, the minority ethnicity in Burundi. The war has claimed more than 300 000 lives.

Econet currently has interests in fixed telephony and mobile cellular operations in Internet and satellite service in Africa, Europe and East Asia - AFP
JOIN THE DEBATE ON THIS ARTICLE ON THE NEWZIMBABWE.COM FORUMS
news@newzimbabwe.com