African Investment Fund Invests in Essar Telecom Kenya

A Kenyan mobile network operator has secured an investment of US$93.75 million from the Pan African Infrastructure Development Fund (PAIDF). The funding will be used by Essar Telecom Kenya Holdings Ltd (ETKHL) for further investment to expand the East African operations of Essar.

ETKHL had recently acquired controlling interest in Econet Wireless Kenya, who operate a GSM telephony license in Kenya under the brand "yu".

Srinivasa Iyengar, CEO, Econet Wireless Kenya (ETKL) said, "We are delighted to have PAIDF, Africa's largest infrastructure equity fund, as an investor in our business. This also signifies the immense value that ETKL has managed to build in a short span of time. We are committed to build a quality network in Kenya with the objective to offer "Best in Class" experience to our customers. We look forward to leveraging our understanding and experience of the telecommunications industry along with PAIDF's regional presence and intelligence as ETKL enters its next phase of network rollout in the Kenyan market."

Tshepo Mahloele, CEO, Harith, Fund Managers for PAIDF, commented that: "The Fund is excited about the telecom opportunity and to be partnering with the Essar Group. We are certain that the Essar Group will bring about a landscape change to the mobile telecoms market in the East African region that will extend beyond Kenya. The partnership between the Fund and Essar Group is in line with our strategy of partnering with companies and individuals looking to expand on infrastructure investment opportunities on the African continent."

Article published on 3rd July 2009