AXIAN Telecom expands into East Africa with $63m Wananchi Group deal

AXIAN Telecom, certainly one of Madagascar’s greatest telcos, has acquired Wananchi Group, the operator of Kenya’s Zuku web and Tanzania’s Simbanet, to deepen its push into East Africa’s fast-growing broadband market.

The $63 million deal, accomplished via AXIAN’s fibre subsidiary Yas Telecom, offers the corporate a 99.63% stake in Wananchi Group (Holdings) Ltd. It marks AXIAN’s greatest step into Kenya, Tanzania, and Uganda, the area’s best and promising web markets.

The takeover locations certainly one of East Africa’s oldest web service suppliers inside AXIAN’s increasing portfolio, which already spans 11 markets, together with Tanzania, Madagascar, Senegal, and Togo. For AXIAN, which has been on a shopping for spree over the previous decade, Wananchi affords a ready-made community and a recognisable model in Zuku, which pioneered dwelling fibre in Nairobi’s middle-class suburbs.

“Wananchi Group’s community, buyer relationships, and native experience align completely with our ambition to be a frontrunner in broadband connectivity throughout Africa,” mentioned Hassan Jaber, AXIAN Telecom’s chief government. “Collectively, we will ship higher entry and new digital companies for the communities and companies we serve.”

Main shake-up

The acquisition may shake up the broadband business in East Africa, the place progress is selecting up however competitors stays fierce. In Kenya, Safaricom and Jamii Telecom dominate the mounted web market, whereas Liquid Clever Applied sciences and Mawingu deal with enterprise and rural connections.

AXIAN mentioned it’s going to keep Wananchi’s workers and operations through the transition. The main focus, the corporate added, might be on bettering community reliability and increasing protection in areas the place broadband entry remains to be restricted.

AXIAN, which serves greater than 41 million prospects throughout 11 African markets, is rebranding its telecom and fintech operations below the Yas identify because it seeks to ascertain a extra unified presence throughout the continent.

The corporate, Africa’s sixth-largest cellular operator, has doubled its mounted broadband base up to now yr and reported double-digit progress in income and EBITDA, in keeping with Bertrand Lacroix, CEO of AXIAN Fibre.

“The combination of Wananchi will leverage Yas’s operational scale, funding capability, and cross-market experience,” Lacroix mentioned. “Continuity of employment and enterprise operations might be maintained, making certain a easy transition for workers, prospects, and companions as Wananchi begins its new chapter throughout the Yas household.”

The sale of Wananchi is a part of a shift in Africa’s telecom market, the place bigger regional gamers are buying smaller ones to develop quicker and cut back prices. For AXIAN, it’s an indication that the corporate desires a share of the continent’s rising web market.