Mubudala, Abu Dhabi’s sovereign wealth fund, is keen on negotiating an exit from Nigerian telecommunications operator EMTS, in which it holds a 30-percent stake, according to TMTFinance.
This move by the fund may be linked to recent reports that investor confidence in the country’s highly competitive telecoms market is dipping due to perceived structural defects in the market and a harsh operating environment. Industry watchers say this does not bode well for long-term growth and sustainability of the telecoms industry.
“There is huge potential for market, though it still seems to operate below potential. While strong, mobile penetration is still lower than in a number of other African markets,” the outlook says.
“Broadband penetration remains low at less than 10 percent, with the government setting a target of 20 percent by 2017. The fundamental challenge remains the impact of declining growth on investment in broadband infrastructure needed to provide a platform for a vibrant Internet economy,” it adds.
http://businessdayonline.com/2014/06/mubadala-seeks-to-exit-nigerias-telecoms-market/#.VKD0ol4AB4
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