On The Money - In Brief
- Shares in South African investment firm Venfin shot up by more than two percentage points on the back of rumours that the company was planning to sell its 15% stake in mobile group Vodacom to fellow shareholder Vodafone of the UK. Vodafone currently holds 35% of Vodacom, whilst SA’s Telkom has a majority 50% investment. Vodafone and Venfin declined to comment on the speculation.
- Mobile phone maker Ericsson plans major investments in East Africa due to an emerging market in the region. “We have fully recovered from the telecommunication crisis. Our focus is on emerging markets like East Africa, which has become exciting after Nigeria in sub-Saharan Africa. The region has a fairly good investment climate and social stability,” Edvard Gavefalk, the company’s East African vice-president, told East African journalists in Stockholm this week. Gavefalk said the group was shifting emphasis to production of mobile phone technology, which is sold to other companies. However, he said poor infrastructure, low Gross Domestic Product and high poverty levels were a challenge to doing business in the region. Gavefalk called upon the East African governments to work with companies and improve infrastructure to ease transmission, communication and service delivery.