U.K. telecom service provider Vodafone (News - Alert) has agreed to buy a 70 percent stake in Ghana Telecom from the Government of Ghana for £452 million pounds ($900 million).

 

The deal implies a total enterprise value for Ghana Telecom of approximately $1.3 billion. The Ghanaian government will retain a 30 percent stake

 

Arun Sarin (News - Alert), Vodafone's outgoing chief executive, described Ghana in a statement as "one of the most attractive markets in Africa."

 

Vodafone has been in talks with the Ghana government for several months since the announcement last year of GT's privatization. The company already has made large investments in Africa. It has already entered into the markets of Egypt, Kenya and South Africa, through its own brand, Safaricom, and Vodacom.

 

Vodafone’s future plans for Ghana, as informed by the company officials include the introduction of M-PESA, a mobile money transfer system. The fiber optic network that covers urban areas such as Accra has also been included in the deal.

 

Ghana Telecom is the country's third largest mobile carrier, with 1.4 million subscribers with a one-third market share, and a fixed-line service. The market in Africa has been seeing a drastic rise in mobile subscriptions rising at more than 55 per cent a year.