The privatisation of Guinea-Bissau incumbent Guine Telecom is not expected to conclude before the country’s general election in March.
Presidential and parliamentary elections, originally scheduled on 24 November 2013, will now take place on 16 March….
The privatisation of Guinea-Bissau incumbent Guine Telecom is not expected to conclude before the country’s general election in March.
Presidential and parliamentary elections, originally scheduled on 24 November 2013, will now take place on 16 March. Earlier elections planned in 2012 were cancelled following a military coup.
A source with knowledge of the matter told TelecomFinance that the situation on the privatisation process would be clearer after the March election.
The government launched a process in October last year to sell an 80% stake in Guine Telecom to a private investor via an international call for tenders.
In an information notice at the time, the government said the applicants must have at least one operator among their major shareholders. This operator must have at least 500,000 fixed and/or mobile customers and a minimum 15% market share in a developing country. Its market capitalisation, or that of its group, must be greater than €100m (US$135.8m) as of 31 December 2011, according to the notice.
Applicants had between 28 October and 6 December 2013 to express their interest but it remains unclear whether this deadline has been extended.
A consortium of West African Development Bank and Africa Capital is acting as exclusive adviser on the sale process.
Privatisation of the asset has been expected ever since the Guinean state became the sole shareholder in Guine Telecom, following Portugal Telecom’s withdrawal from the company in June 2008.
The operator has a fixed-line monopoly and provides mobile services via its Guinetel subsidiary, the country’s smallest operator far behind MTN and Orange.
The government commented the privatisation is aimed at revitalising the telecoms sector, which it says has development potential. It notably pointed to the 22% mobile telephony penetration rate in 2012, below the 38% average for countries in the West African Economic and Monetary Union (WAEMU).
