Friday, Sep 24, 2021
HomeEconomyQatar to Invest Ksh.21.7 billion in Airtel Africa’s mobile money

Qatar to Invest Ksh.21.7 billion in Airtel Africa’s mobile money

Airtel customers to receive money for free

Qatar Investment Authority (QIA) is investing a minority stake in its telco’s mobile-money unit, Airtel Mobile Commerce BV (AMC) at a tune of Ksh.21.7 billion (US$.200 million).

The transaction values Airtel Africa’s mobile money business at Ksh.282,42 (US$.2.65 billion) on a cash  and debt free basis.

QIA will hold “a minority stake in AMC BV upon completion of the transaction with Airtel Africa continuing to hold the majority stake. The transaction will be subject to customary closing conditions,” said Airtel Africa in a statement.

The transaction will close in two stages. Ksh.16.2 billion will be invested at the first close, subject to regulatory filings, with Ksh.5.4 billion to be invested at the second close. The Transaction first close is expected in August.

That’s on top of the Ksh.32.5 billion (US$.300 million) Airtel Africa received from selling stakes in the business to private equity firm TPG and Mastercard in April.

In its financial results, Airtel Africa reported a net profit of Ksh.15.4 billion (US$.142 million) for the half year ended June 30.

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This was on the back of strong growth in data and mobile money revenues along with stable finance costs.

According to the telco, this was strong double-digit growth across voice (26.0%), data (37.4%) and mobile money (53.7%), and across all our regions.

The telco’s revenue rose nearly 31 percent on-year to $1.11 billion, the company said Thursday.

Strong revenue growth was recorded across all regions: Nigeria up 38.2%, East Africa up 32.8% and Francophone Africa up 24.9%; and across key services, with revenues for voice up 26.0%, data up 37.4% and mobile money up 53.7%.

“Q1 of last year was impacted by the start of Covid, but even after adjusting for these effects, our Q1’22 revenue growth rates for the Group, service segments and reporting regions were all ahead of Q4’21 trends,” said Raghunath Mandava, Airtel Africa’s chief executive officer.

Airtel Africa provides its telecommunications and mobile money services in 14 countries in Africa, primarily in East, Central and West Africa.

AMC BV is the holding company for several of Airtel Africa’s mobile money operations.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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