The sale will take place at the same time as the transfer of a further 15% of shares in Mobile Telecommunications Limited (MTC) to black economic empowerment partners, said Robert Offner, general manager for finance at MTC's parent company, Namibia Post and Telecommunications Holdings (NPTH).

"We would like to have this whole deal concluded, signed and sealed by the end of December," Offner said.

Interested parties have until July 15 to express interest in MTC before the tender process begins. Offner said that priority would be given to companies already active in the region, although that will not be the most important factor in selecting the successful bidder.

"We're looking for international players, but also regional players in the African context," adding that bids from companies with existing links with MTC or potential synergies with its operations could be attractive.

Offner said it was too early to say how much NPTH hopes to raise through the sale.

Offner said that parallel to the MTC privatisation – but not necessarily within the same timescale – the sector will be opened to increased competition. Namibia’s telecommunications systems are wholly government-owned through NPTH, with Telecom Namibia running fixed line services and MTC handling mobile services.

"Some time ago a tender was sent out for a second mobile operator. That is still with the Namibia Communications Commission (regulator)," Offner said. "I do understand that the whole process there will be rejuvenated."

MTC was formed in conjunction with Swedish partners including Telia after Namibia’s independence from South Africa in 1990. The Swedish partners exited MTC last year under a long-agreed strategy to open the company up to more black investors. Namibia, like South Africa, is seeking to redress the imbalances of decades of apartheid.

Source: Reuters