Emerging market-focused Millicom finalizes Africa exit, focuses on Latin America

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Luxembourg-based telecommunications firm Millicom, which focuses solely on rising markets, introduced on April 19 that it’s going to finalize the divestment of its African holdings with the sale of the corporate’s Tanzania operations for an undisclosed sum to Madagascar-based, pan-African operator Axian that was a part of the consortium that acquired Millicom’s operations in Senegal in 2018.

The announcement follows an identical deal earlier in April which noticed Millicom signal an settlement for the sale of its stake in India’s AirtelTigo to the Ghanaian authorities.

“Today, Tigo is a leading provider of broadband services to consumers, businesses and governments in Latin America, where penetration and data speeds remain low by the standards of more mature markets. Through our investment-led strategy, we are bringing reliable high-speed mobile and fixed broadband to the communities we serve in the region. With today’s announcement that we are divesting our remaining African businesses, we close a chapter in our history and open another solely focused on the Latin American region,” stated Millicom’s CEO, Mauricio Ramos, following the deal, which is estimated to be value $25 million. 

The NASDAQ-listed Millicom presently has greater than 52 million cellular subscribers throughout 11 nations in Latin America and Africa, by way of its Tigo model. Since 2017, Millicom has actively divested itself from its operations within the Democratic Republic of Congo, Rwanda, Senegal and Chad.

The firm’s Tanzania operations have been Millicom’s largest in Africa with 13 million prospects and $365 million in income final 12 months. Those returns, nonetheless, represented a mere 6 per cent of Millicom’s complete income in 2020; a degree famous by Ramos, who indicated after the April 19th deal that “Millicom is a Latin American focused telecom company with 95 per cent of our revenues coming from that region.”

Axian’s move into Tanzania comes after the corporate gained notoriety for being the primary telecom to Please use the sharing instruments discovered by way of the share button on the high or aspect of articles. roll out 5G in Africa. Axian is without doubt one of the greatest buyers within the World Bank-funded Eastern Africa Submarine Cable System, a 10,000 kilometer undersea fiber optic cable system that providers voice, knowledge, video and the Internet and connects nations in Eastern Africa to the remainder of the world. 

As a part of its first foray into an English-speaking African nation – Axian already operates in Madagascar, Comoros, the French abroad island territories of Réunion and Mayotte, in addition to Senegal – the corporate plans to take a position $400 million into Tanzania over the subsequent half-decade.