On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Uganda’s Government is debating scrapping of value added tax (VAT) on mobile phones next year, the information and communication technology minister, has said.

"We missed this year, but it is an issue we are still discussing and are concerned about," Aggrey Awori said.

­ Zain Nigeria has announced that it recently signed a managed services and care contract with Nokia Siemens Networks, which came into effect in the past few days. The contract covers the network operator's fiber backbone network, not the mobile network. As part of this agreement, Nokia Siemens Networks will provide managed services for Zain's multi-vendor Fiber and Dense Wave Division Multiplexing "DWDM" network in Nigeria which is 4000km long countrywide outside plant network.

- Millicom International has reported that its third-quarter revenues rose by 7% to US$856 million, while net profit fell toUS$143 million, from US$161 million a year ago. Net customer additions in quarter in Africa amounted to 502,000. Revenue in Africa grew by 21% in local currency in Q3 2009 and by 7% in dollar terms to the level of US$200 million. The company continue to invest heavily in Africa with capex in Q3 2009 of US$82 million or 41% of sales.

To download the company’s statement on Q3-2009 click on the following link


- Algeria’s first conference on the creation of start-ups emphasized the need to create a national technology investment fund in Algeria for the financing of projects of enterprises specializing in new information and communication technologies (ICTs). The fund is meant to help Algerian young people achieving their ideas and projects relating to the creation of ICT enterprises, their setting up as well as their management, they said. In this regard, Belmahrez, ICT Director General at Ministry of Post and ICTs highlighted the project of Algerian Start-up Initiative (ASI), launched on Monday, and which aims at helping Algerian enterprises develop. He also pointed out that the working-out and implementation of the project reflects the interest attached by the public authorities to the establishment of an information society, by the speeding up the use of ICTs in enterprises, the development of mechanisms and incentive measures enabling access to equipments and ICT networks, as well as the development of skilled human resources.

- South Africa’s ConvergeNet faces an R11 million lawsuit, stemming from its aborted attempt to take over the now-defunct Choice Technologies earlier this year.

The JSE-listed company pulled out of its proposed rescue of Choice at the 11th hour, and is now being held liable for the liquidated company's operating costs that were incurred between mid-year and this month.