Luxembourg-based Millicom telecom, which focuses entirely on emerging markets, announced on April 19 that it will complete a divestment of its African stakes with the sale of operations. Company action in Tanzania in undisclosed amounts to Madagascar-based operator Axian that was part of a conglomerate that acquired Millicom’s operations in Senegal in 2018.
The announcement follows a similar deal in April when Millicom signed an agreement to sell its stake in AirtelTigo India to the Ghanaian government.
“Today, Tigo is the premier broadband service provider for consumers, businesses and governments in Latin America, where access and data rates remain low by market standards. more mature. Through our investment-based strategy, we are bringing reliable high-speed fixed and mobile broadband to the communities we serve in the region. With today’s announcement that we will divest our remaining African businesses, we close one chapter in our history and open another chapter focusing solely on Latin America, ”said the Director. Millicom’s chief executive, Mauricio Ramos, said after the deal was estimated to be worth $ 25 million. .
Millicom listed by NASDAQ now has more than 52 million mobile subscribers across 11 countries in Latin America and Africa, through the Tigo brand. Since 2017, Millicom has actively divested from its operations in the Democratic Republic of Congo, Rwanda, Senegal and Chad.
The company’s Tanzania operation is the largest Millicom in Africa with 13 million customers and $ 365 million in sales last year. However, those profits will only account for 6% of Millicom’s total revenue by 2020; One point was noted by Ramos, who pointed out following the April 19 agreement that “Millicom is a Latin American-focused telecom company with 95% of our revenue coming from that region.”
Axian’s move to Tanzania takes place after this company became famous for being the first telecom company Please use the sharing tools found through the share button at the top or next to the article. 5G deployment in Africa. Axian is one of the largest investors in the World Bank-financed East African Submarine Cable System, a 10,000 km undersea optical cable system providing voice, data, video and Internet services and connectivity. countries in East Africa to the rest of the world.
As part of the first foray into an English-speaking African country – Axian has operations in Madagascar, Comoros, the French overseas islands of Réunion and Mayotte, as well as Senegal – which plans to invest 400 million dollars into Tanzania in the next half -decade.