PAIDFAn African Investment Fund, Pan African Infrastructure Development Fund (PAIDF), has pledged an investment of US$93.75 million in Kenyan mobile network operator Essar Telecom Kenya. The funding will be used by Essar Telecom Kenya Holdings Ltd (ETKHL) for further investment to expand the East African operations of Essar.

ETKHL had recently acquired controlling interest in Econet Wireless Kenya, which operates a GSM telephony license in Kenya under the brand “yu”, and subsequently renamed the company as Essar Telecom Kenya Ltd. (”ETKL”).

Tshepo Mahloele, CEO, Harith, Fund Managers for PAIDF, commented that: “The Fund is excited about the telecom opportunity and to be partnering with the Essar Group. We are certain that the Essar Group will bring about a landscape change to the mobile telecoms market in the East African region that will extend beyond Kenya. The partnership between the Fund and Essar Group is in line with our strategy of partnering with companies and individuals looking to expand on infrastructure investment opportunities on the African continent.”

Srinivasa Iyengar, CEO, Econet Wireless Kenya (ETKL) said, “We are delighted to have PAIDF, Africa’s largest infrastructure equity fund, as an investor in our business. This also signifies the immense value that ETKL has managed to build in a short span of time. We are committed to build a quality network in Kenya with the objective to offer “Best in Class” experience to our customers. We look forward to leveraging our understanding and experience of the telecommunications industry, along with PAIDF’s regional presence and intelligence as ETKL enters its next phase of network rollout in the Kenyan market.”

TelecommunicationsETKL launched its services in October 2008 and is regarded as one of the most innovative and fast growing telecom operators in Kenya. The company already has approximately 400,000 subscribers on its network in Nairobi and Mombasa and it expects this number to grow significantly as it completes it roll out across Kenya by end of the year.

ETKL has launched its operations as Kenya’s fourth mobile telecommunications operator under the yu brand. yu’s market strategy has been primarily to target the youthful segment with the launch of attractive tariffs as well as innovative products and services. yu has been able to achieve 70% brand awareness since launch amongst its target audience. ETKL has been successfully operating under a low-cost model that has revolutionized the Kenyan mobile market and enabled it to significantly reduce the cost of mobile communications.

To differentiate itself from the competition yu has embarked on launching innovative products and services such as Imoved and Eneza electronic top up, ensuring easier communication for its consumers. Imoved enables the consumer who has switched to yu network to alert their friends, family, and colleagues that they have switched and what their new mobile number is. Eneza Electronic Top up enables paperless top ups, helping conserve the environment. Several innovative products and services are in line to be launched through the year. With employee strength of 350 people, increased geographical coverage, a clear and reliable network, and unrivalled products and services, yu is set to take the Kenyan market by storm.

EssarEssar Telecom Business
Essar, one of the initial entrants in telecom business in India, is today a global player in the communications sector with a comprehensive set of offerings across the spectrum of the communications business — in telecom services, telecom tower infrastructure, telecom retail, and IT/telecom enabled services.

  • Essar holds a 33% interest in Vodafone Essar, which is a joint venture with the Vodafone Group, and is one of India’s largest cellular service providers, with over 75 million subscribers. Essar Telecom Kenya has recently launched Kenya’s fourth mobile cellular network under the brand “yu”.
  • “The MobileStore”, a pioneering telecom retail initiative from the Group, is India’s largest national retail chain of mobile phone stores with over 1300 stores spread across 200 cities.
  • The Group owns Essar Telecom Infrastructure Ltd., one of the largest independent telecom tower infrastructure service provisioning companies in India.
  • Essar operates India’s second largest outsourcing services business operating under the Aegis brand, with over 33,000 employees globally and 32 delivery centres in Africa, Asia, South America, and North America.

      • About Essar
      The Essar Group is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Projects. Essar has a presence in more than 15 countries worldwide. With a firm foothold in India, Essar Group is focused on global expansion with projects and investments in North America, Africa, the Middle East, the Caribbean and Asia.

      About PAIDF
      PAIDF is a Pan African fund focussed on investing in and developing infrastructure projects across African nations. The PAIDF is based in Johannesburg and Tunisia. Offices in Ghana will be opening soon.
      PAIDF has raised USD 625 million, primarily from pension funds from various African nations and from banks and DFIs based in Africa. PAIDF has a long term strategy with a 15 year investment horizon and is deeply focussed on coordinated infrastructure development across the continent.

      Visit the Pan African Infrastructure Development Fund’s website
      Essar Communications

      Source(s):
      cellular-news.com