Axian to invest $500m in Tanzania, seeks more acquisitions
Axian to invest $500m in Tanzania, and seeks more acquisitions
29 April 2021 | Alan Burkitt-Gray
Axian, the group that last week bought Tigo Tanzania and Zantel, says it plans to invest US$500 million in the business.
Millicom sold the two operations, based in different parts of Tanzania, to a consortium led by Madagascar-based Axian.
Axian CEO Hassanein Hiridjee (pictured) said: “We will increase our coverage, we will increase the level of our services, we are bringing new technology. We do think that we have to embed in the asset much more infrastructure.”
Zanzibar is an autonomous group of islands in the Indian Ocean that has been part of Tanzania since 1964. Zantel and Tigo Tanzania have remained as separate companies.
Hiridjee said: “Axian is starting a new chapter in Tanzania and Zanzibar in the long term. We are convinced that Axian’s model will accelerate digital inclusion and open up access to innovative services for populations while supporting economic growth.”
The company told African media that it is seeking more deals in the region.
Last week’s deal saw the final departure of the Millicom group from Africa, leaving it to focus on Latin America. The sale to Axian includes strategic ownership in the EASSy cable landing station in Dar Es Salaam and a consortium network with over 3,200km of backbone and over 600km of metro fibre.
According to the new announcement, the Axian consortium plans to invest the sum of $500 million in the Tanzanian telecoms market over five years.
Axian, which has not yet identified the other members of the consortium, says it has investments in financial services, energy, real estate, telecom and innovation across Africa and the Indian Ocean.