Mauritius headquartered fibre-optic firm Liquid Telecom says it has completed a transaction to purchase the assets and businesses of insolvent Rwandan fixed line operator, Rwandatel.

Liquid Telecom is the subsidiary of African telecommunications group Econet Wireless. Liquid says it has the largest fibre-optic network reach in Africa as its infrastructure extends 13,000 km from Cape Town to East Africa.

Meanwhile, Rwandatel is jointly owned by Libya’s LAP Green Networks and the former National Social Security Fund of Rwanda: two parties that respectively have an 80% and 20% stake in Rwandatel.

According to the New Times newspaper, Liquid Telecom has said the deal, reportedly worth $4 million, could help accelerate its expansion across Africa.

The deal excludes most of the land that is the property of Rwandatel, according to Liquid Telecom.

Rwandatel’s insolvency administrator Richard Mugisha said the telecom unit’s assets, including its copper and fibre network, have been sold to Liquid Telecom.

The acquisition of Rwandatel’s assets comes four months after Liquid Telecom bought the East African assets of the JSE listed Altech group, including a controlling interest in Kenya Data Networks (KDN).

"This is a good outcome for the creditors and the telecommunications sector," Mugisha said.

He added, "Liquid Telecom is a strong player in the industry, with a clear vision for the future of Rwandatel and the price received was the highest offered by any of the interested parties."

Sam Nkusi, the chairman of Liquid Telecom, has said the acquisition is planned to allow his company to introduce additional products, services and networks in that country.

"Liquid Telecom is delighted that the sale has been finalised as this will immediately result in significant further investment in the network," he said.

"Our priority is to quickly rehabilitate the core network and to build out the access network in order to serve Rwanda's enterprises and residences with the most reliable, high speed, and affordable telecommunications," Nkusi said.

BuddeComm research describes Rwanda as "one of the fastest growing mobile markets in Africa."

The research firm says Rwanda has a mobile penetration rate of 55%. Rwanda has a population of just over 10 million, according to the World Bank.