African fund invests $93.75 million in Essar Telecom Kenya

Essar Telecom Kenya Holdings Ltd (ETKHL), a subsidiary of Essar Telecom Ltd, announced today that Pan African Infrastructure Development Fund (PAIDF) has invested $93.75 million in ETKHL for further investment, to expand Essar's East African operations.

ETKHL recently acquired a controlling interest in Econet Wireless Kenya and subsequently renamed the company Essar Telecom Kenya Ltd (ETKL). ETKL operates a GSM telephony licence in Kenya under the brand “Yu”.

ETKL launched its services in October 2008 and already has approximately four lakh subscribers on its network in Nairobi and Mombasa. It expects this number to grow significantly as it completes it rollout across Kenya by the end of this year.

Tshepo Mahloele, CEO, Harith, fund managers for PAIDF, said: “The partnership between the fund and the Essar Group is in line with our strategy of partnering with companies and individuals looking to expand on infrastructure investment opportunities on the African continent.”

To differentiate itself from the competition, Yu has embarked on launching innovative products and services and several more are due to be launched through the year, the company, which has an employee strength of 350 people, said in a release.

PAIDF is a Pan-African fund focused on investing in and developing infrastructure projects across African nations. It has raised $625 million, primarily from pension funds from various African nations and from banks and DFIs based in Africa. PAIDF has developed a long-term strategy, with a 15-year investment horizon focusing on coordinated infrastructure development across the continent, Essar said.