Rwandatel - Second Divestiture

Cancelled

On 15 October 2007, the Rwandan Government sold 80% stake of the national mobile and fixed line operator Rwandatel to Libya Africa Portfolio for Investments for US$100 million. The remaining 20% remained owned by the Rwanda Social Security Fund. Libya Africa Portfolio for Investments was a Libyan government owned investment company. The award followed a competitive bidding process. In August 2007, six firms expressed their interest in the acquisition of Rwandatel: Vodacom, Celtel, V-Tel Holdings, Bit Map Ltd, Libya Africa Portfolio for Investments, and R-Com. Early October 2007, two firms, Libya Africa Portfolio for Investments and Vodacom, were short-listed to submit technical and financial bids. Under the terms of the agreement, Libya Africa Portfolio for Investments was expected to invest US$317 million in the operator over a 15-year period, including US$87 million during the year 2008. RwandaTel was first privatized in 2005 when a 99% stake was sold to Terracom for US$20 million (Project 3868). However, after disagreements between the government and Terracomon the level of investments, the Finance Ministry of Rwanda bought back the shares in July 2007. In April 2011, Rwanda's telecom regulator Rwanda Utilities Regulatory Agency (RURA) revoked Rwandatel's mobile concession due to its failure to meet licence obligations. The operator's fixed telephony and ISP permits remained operational. By Q2 2011, RwandaTel did not report any subscribers anymore.