Luxemburg’s Millicom International Cellular SA divests its African business

AFRICA – Millicom International Cellular SA, an international telecommunications and media company headquartered in Luxemburg- Millicom International Cellular which operates the Tigo brand, has announced a complete exit from the African market.

The company said it wants to fulfil its strategy to focus solely on its Latin America operations, including in Bolivia, Colombia, and Paraguay.

The telco has since signed agreements for sale of its operations in Tanzania and its stake in the AirtelTigo joint venture in Ghana.

In Tanzania, Millicom has agreed to sell its entire operations to a consortium led by Axian, a pan-African group based in Madagascar that was part of the consortium that acquired Millicom’s operation in Senegal in 2018.

According to Hassanein Hiridjee of Axian Group, Axian is starting a new chapter in Tanzania and in Zanzibar for the long term and theyare convinced that the Axian model will accelerate the digital inclusion and open access to innovative services for the clients while supporting economic growth.

In Ghana, the company, along with its JV partner Bharti Airtel Limited, have signed a definitive agreement for the transfer of AirtelTigo to the country’s government.

Similarly, the Government of Ghana, Bharti Airtel (Airtel), and Millicom International Cellular S. A. (Millicom), through their respective subsidiaries, have also announced that the definitive agreement for the transfer of ‘AirtelTigo’ (Airtel Ghana and Millicom Ghana) to the Government of Ghana on a going concern basis has been signed.

Millicom will receive US$25-million as a result of this agreement.

“Today Tigo is a leading provider of broadband services to consumers, businesses and governments in Latin America where penetration and data speed remain low by the standard of more mature markers.”

“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 Latin America,” said Ramos.

Tigo is Tanzania’s second largest mobile phone operator after Vodacom with over 13 million customers and a market share of 25%, according to December 2020 report by Tanzania Telecommunications Regulatory Authority.

Since 2017, Millicom has actively divested itself from its operations in the Democratic Republic of Congo, Chad, Senegal and Rwanda.

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