A well known news agency reported Sunday that India's Essar Group is exploring possibilities of investing in the United Arab Emirates (UAE)-based Dhabi Group's telecom business in Africa.

On Sunday, an agreement was signed by Dhabi Group chairman Sheikh Nahyan Bin Mubarak Al-Nahyan and Essar Group chief executive Prashant Ruia to start discussions in this regard.

A joint statement issued by the companies said that an equity infusion into the business as growth capital would be involved in the deal, which will be the basis of a partnership to create a significant presence in Africa. No further detail on the deal was exposed.

The report said that the exclusive financial advisor to the Dhabi Group would be the Standard Chartered Bank.

Sheikh Nahyan told reporters after the signing ceremony: "Today's (Sunday) agreement seeks to tap the huge potentials of the African market and create more job opportunities."

He continued that ties between India and the UAE would be strengthened by the agreement.