South African Firm Buys Uganda Telecoms Outlet

South African mobile telecommunications company, Celcom Group, announced on Tuesday its acquisition of 50.5 percent interest in Nile Com which operates seven MTN branded retail outlets and controls 1,200 dealers who sell mobile telecoms products.

Nile Com is owned by a Kampala businessman, Charles Mbire, who will hold the remaining share capital and become the chairperson of MTN Uganda.

The Nile Com business will be transferred to a newly incorporated company in Uganda, to be named Celcom Uganda.

Celcom purchased its shares in Nile Com for $1.3 million.

A press statement from Celcom said the Nile Com business is complementary to its business in South Africa and the acquisition presents the group with the opportunity to secure a significant distribution footprint in Uganda.

Uganda is expected to present significant growth opportunities in the next few years. However at present there is limited mobile telephone penetration and service offering primarily voice and short message service on a pre-paid basis.

Source African Press Agency

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