The Econet Group and Telecom Egypt have signed a memorandum of understanding (MoU) that will enable Econet’s Liquid Telecom unit to complete a terrestrial fibre optic network stretching all the way from Cape Town in South Africa to Cairo in Egypt.
The MoU provides for Telecom Egypt and Liquid Telecom intend to mutually capitalize on opportunities by sharing and utilising their infrastructure in order to maximize monetization of the bandwidth and existing infrastructure along the 60 000 kilometre network.
Under the terms of the MoU, the two companies will also develop a framework for commercial, technical and operational cooperation.
Strive Masiyiwa, Liquid Telecom Founder and Chairman of Econet signed the MoU on behalf of Liquid Telecom, while Ahmed El Beheiry, Telecom Egypt Chief Executive Officer signed for the company.
The Advisory and Capital Department of the African Export-Import Bank (Afreximbank) was Liquid Telecom’s financial adviser for the MoU after Liquid Telecom appointed earlier this year for a series of strategic engagements.
Liquid Telecom is an independent data, voice and IP provider in eastern, central and southern Africa, supplying fibre optic, satellite and international carrier services to Africa’s largest mobile network operators, ISPs and businesses.
Telecom Egypt, is the first telecom operator in Egypt, providing all telecom services, including fixed and mobile voice and data services. It recorded a revenue of more than $1.1 billion in 2017.
The company holds a 45% stake in Vodafone Egypt.