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Convergence Partners buys stake in Tanzanian company
November 16, 2009
By Thabiso Mochiko
Andile Ngcaba’s Convergence Partners has bought a 35 percent stake in Tanzanian-based telecommunications wireless provider WIA Company for an undisclosed amount, the compnay said on Monday.
The shares will be held through Convergence Wireless Networks, a joint venture between Convergence Partners and Comsol, a broadband wireless infrastructure provider.
Convergence Wireless will take an active role in the business by providing support at a strategic and operational level but also facilitate access to resources.
Comsol will act as WIA’s technology partner and assist in the deployment of wireless broadband networks.
Arif Hussain, Convergence Wireless executive, said Tanzania is one of the fastest growing economies in East Africa with Internet penetration standing at 1.3 percent of the country’s population compared to the African average of 6.7 percent of the continent’s population.
“The country is poised to benefit greatly from the increase in international connectivity spreading across the region, especially after the landing of our Seacom cable. We are excited by the attractive opportunities for value-added services in Tanzania, especially corporate data networking and ISP [internet service providers] services, where WIA has a strong presence, and look forward to working closely with them to develop their infrastructure and services offering,” Hussain said.
Eric Mwenda, the chief executive of WIA, says WIA is on an “exciting growth path” and needed equity partner capable of providing funding to drive the company’s network expansion and technology partnerships to assist the business to take full advantage of the fast growing enterprise sector across Tanzania.
WIA has secured capacity on the Seacom submarine fibre optic network, in which Convergence Partners has a stake, to further drive down the costs of communications and services.
According to Convergence Partners, WIA’s growth strategy will focus on the upgrade of its core network around Dar es Salaam, the deployment of a new national WiMAX access network covering key business centres.
WIA’s acquisition follows the recent 68.5 percent acquisition of Mozambican-based wireless network provider INTRA Lda, in partnership with Internet Solutions.
The acquisitions form part of Convergence Partners’ strategy to have a portfolio of wireless broadband operators across the south and east African region and also diversify its portfolio of interests outside of South Africa.
Its aim is also to invest in established operations or green-field infrastructure projects that improve access to communications, broadband services and technology offerings throughout Africa.
Convergence Partners’ other investments are in Telkom, Vodacom, Seacom, New Dawn Satellite.
Convergence Partners believe that Africa’s unique geopolitical landscape will continue to limit the efficient use of conventional telecommunications infrastructure.
A blend of fibre, wireless and satellite technology is necessary to meet the particular African conditions and reach everywhere, linking the remotest regions to major centres via affordable communication infrastructures that are easy to install and maintain whilst meeting growing bandwidth requirements.
To view the Convergence Partners website - click here
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