Government is said to soon engage a management services company to run the now State-owned telecommunication company, AirtelTigo.
The selection of a management services company to run AirtelTigo, according to Communications and Digitisation Minister, Ursula Owusu-Ekuful, is to allow for the continuous operation of the company in the interim, while government seeks expert advice on its long term structure of the company from transaction advisors.
“We intend to engage transaction advisors to provide expert advise on the options of the long term structure of the company going forward, but for the immediate future we are going to engage a management services company to assist the company to continue its operations,” stated the Minister.
Speaking further the Minister noted that, government is willing to invest in the company to enable it provide dividends for government in return.
“This is a capital intensive industry and if you invest you will get the returns, but if not you will feel the pinch and that’s what’s playing out in the industry. But we have the commitment at the highest level that in the interim whatever investments AirtelTigo requires to upgrade and extend their operations, they will get it. Government is stepping into the shoes of a shareholder who wants it’s investment to pay dividends to it, so we won’t just take up the company and sit and watch it deteriorate, we will do what needs to be done to grow the operations of the company,” she added.
Parent companies of AirtelTigo, Bharti Airtel Ghana Holdings B.V. and MIC Africa B.V. in October last year announced their exit from the Ghanaian market.
With their departure, government has taken ownership of the telecommunication company with all the assets, agreed liabilities and customers of AirtelTigo transferred to government who is now the new owner of the company.
The Minister for Communications and Digitalisation has in previous media engagements on government’s ownership of AirtelTigo, stated that government will operate the now national asset in the best interest of the nation and ensure the protection of the interests of all employees, customers, contractors, suppliers and stakeholders as well as sustain the digital transformation of Ghana.
The sale of AirtelTigo to government is estimated to have approximately cost $25 million (Ghs 145.9 million).
As of December 31, 2020, AirtelTigo had 8.1 million-plus subscribers and offers direct and indirect employment opportunities to almost 10,000 people.
