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02.08.2012 Business & Finance

DEG invest US$25million into Tigo & Vodafone

By myjoyonline
DEG invest US$25million into Tigo & Vodafone
LISTEN AUG 2, 2012

Tigo and Vodafone Ghana are two of the five corporate organizations in Ghana who have benefitted from the US$60million that German investment company DEG has invested in Ghana so far.

Information exclusively available to Adom News from DEG indicate the company has advanced a US$15 million loan to Millicom Ghana (Tigo), and a US$10million loan to Vodafone since coming into the country.

DEG has also given similar loan facilities to Fidelity Bank and Calbank – both banks got US$10million each.

Recently the company advanced a US$5million loan to UT Bank to support small and medium scale enterprises (SMEs), and also acquired 12.5% equity in the bank at a value of US$10 million.

Adom News gathered that UT was the first company it had acquired equity in, whereas the other investments were in the form of loans.

Meanwhile DEG's Regional Director for West Africa, Andreas Voss told Adom News apart from its investments in the two telcos, it has also invested in some telecom tower companies, which serve Tigo, Vodafone and MTN, but he did not specify which companies.

He said the company's investment focus in Ghana has been mainly on SMEs, agriculture, agro-processing, manufacturing, service, energy generation, infrastructures and telecoms.

Mr. Voss said apart from giving money to financial institutions like UT, Fidelity and Calbank to support SMEs, “DEG is working directly with a couple of medium-sized companies in the cocoa processing sector.”

He said DEG sees Ghana as a very positive business environment and so they are committed to partnering the country's development in the long term, adding that Ghana is the company's hub to West Africa.

“Ghana's private sector is developing very fast and we want to play a role in it so we have a established an office here since 2008 and we are here for the long haul,” he said. “In Ghana our primary focus is to increase our funding of investments in agric, manufacturing, service and to provide more risk capital such as equity or equity-like financing instruments for the projects we finance.”

Mr. Voss said the DEG has so far invested €300million (US$370million) in West Africa, and €1.5billion (US$1.85billion) in the whole of Africa, with particular focus on energy generation and IPPs on the continent.

He said going forward DEG is looking at investing more into infrastructure, renewable energy, biomass and manufacturing in Ghana and in the rest of Africa.

Story by Ghana/Samuel Nii Narku Dowuona/Adom News

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