The Ghanaian government has reached agreement with the British mobile phone giant Vodafone to sell 70% of the state owned firm Ghana Telecommunications Company Limited (“Ghana Telecom”) for US$900 million.

Arun Sarin the outgoing Chief Executive of Vodafone praised the deal saying he expects it to “generate substantial benefits for Vodafone and for the Ghanaian economy”. The deal marks a change in direction for the Vodafone which had previously avoided direct investment in the African market.

Ghana Telecom is Ghana’s largest telecommunication firm offering both fixed line and mobile phone services in Ghana.

The deal has however sparked criticism from the Ghanaian opposition, the National Democratic Congress (NDC), who argue the government is selling off state assets too cheaply, they also expressed concerns that Vodafone does not have the expertise to manage the Fixed line services of Ghana Telecom and they have vowed to derail the sale.