(Ecofin Agency) - Axian Consortium plans to invest $500 million in the Tanzanian telecom market over the next five years. The decision follows the signing last April 19 of an agreement with Millicom International Cellular (MIC) for the acquisition of its subsidiaries Tigo Tanzania and Zanzibar Telecom (Zantel).
The investment will help expand the two subsidiaries’ coverage across the country, with a particular focus on 4G technology.
“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,” said Axian CEO Hassanein Hiridjee.
Axian's move comes timely for Tigo Tanzania and Zantel, which like other telecom companies in the country are experiencing an increase in demand for broadband connectivity. The need is no longer just in the cities but is also growing in rural areas. The two companies, which had a combined market share of 27% by 2020, according to the Tanzania Communications Regulatory Authority (TCRA), have an opportunity to grow.
Through the strengthening of Tigo Tanzania and Zantel's telecom infrastructures, Hassanein Hiridjee says he wants to accelerate people's access to affordable mobile services and contribute to digitalization throughout the country. The businessman also sees this action as a way to improve people's access to mobile financial services and accelerate financial inclusion in the country.