The President of IMANI Africa, Franklin Cudjoe, says he does not trust the government to adequately manage the affairs of telecommunications company, AirtelTigo, given the state’s poor track record in handling the private enterprises it has acquired so far.
In an interview on Eyewitness News, Mr. Cudjoe said “the news hit me in a very unconventional way. When I heard the story I thought that maybe the company would have been redeemed by a private company. I thought they would salivate over a hitherto profitable enterprise. But none came forward. We have had experiences with the state not managing such enterprises well, especially in cases where the enterprises were being ran being private enterprises who run away.”
“My challenge with government running these stuff is that usually, they do not end up well; talking about Ghana Telecom, Ghana Water Company, the electricity sub sector, etc. What is a bit worrying is that the government is saying that all of a sudden it can manage it.”
He demanded a blueprint on how the government intends to revive the enterprise, which is bedevilled by debt.
“I am a bit worried. There has been a pandemic and we are already struggling. So I am wondering how the government believes that all of a sudden it is best fit to save a company that has debt of about GHS60 million from collapse. We should be asking questions. Once they show us where the money will come from, we will be rest assured. We don’t want a situation where we wake up one day and are being asked to pay AirtelTigo Recovery Levy.”
“Government should be more circumspect. What are the underlying challenges behind AirtelTigo’s decision? Is it because they cannot stand the competition? Is it also because of the sector’s own limitations? We need to delve deeper into the issue other than suggesting that because some people may lose their jobs when the company collapses, the government should take it up. This is the only way I will be convinced. ”
The government of Ghana and the parent companies of AirtelTigo, Bharti Airtel Ghana Holdings B.V. and MIC Africa B.V have concluded negotiations and signed an agreement to transfer the shares of the company to the government following the announcement of the company’s departure from the Ghanaian market last year.
This agreement transfers all customers, assets and agreed liabilities of AirtelTigo to the Government of Ghana.
“We consider this a positive step as it adds to the growing portfolio of digital infrastructure assets being utilised by the government,” a government statement said.
“Government will operate this national asset in the best interest of the nation, the company, telecommunications industry, and ensure the protection of the interests of all employees, customers, contractors, suppliers, stakeholders and sustain the digital transformation of Ghana.”
The Minister of Communications and Digitalisation, Mrs. Ursula Owusu-Ekuful (MP) signed on behalf of the Government of Ghana, while Ms. Jatina Catharina Uneken-van de Vreede, Mr. Martin P Frechette, Mr. Timothy Pennington, Mr. Eric Nana Nipah and Mr. Vish Ashiagbor signed on behalf of the seller entities.
In October 2020, Airtel and Millicom announced that they were exiting the Ghanaian market and this agreement concludes the extensive negotiations between the parties to ensure a seamless transition and continued operation of AirtelTigo thereafter.
“The telecommunications sector is of strategic importance to the government, and it is critical the sector remains healthy, dynamic, vibrant and most importantly, competitive. We are determined to make Ghana the digital hub of the subregion and this acquisition is a step in the right direction,” the government said in a statement.
