By the end of 2006, just 15 African countries had sold shares in their state-owned telecommunications operator to the private sector, and only 8 countries had introduced competition in the fixed-line market. Most of the privatization transactions took the form of equity and management partnerships with strategic investors; only Nigeria and Sudan privatized by issuing shares on local or regional stock exchanges.
The total value of privatizations from 1993 to 2006 was $3.5 billion, half of which was accounted for by South Africa’s Telkom. The nature of strategic partnerships and their success have varied over time. Direct investment by developed-country investors in the fixed-line business has been complemented by sales to developing-country investors, particularly from the Middle East and South Asia. The performance of these privatizations and partnerships has been mixed. In some cases, such as Uganda, privatization was part of a successful overall reform of the sector. In others, investors have withdrawn, resulting in the renationalization of ICT assets. Rwanda and Ghana resold the businesses after the first privatization failed, indicating a sustained commitment to reform.