The transaction is currently subject to regulatory approval. Upon completion, it will bring Africell’s portfolio to four operations with a total market potential of over 120 million inhabitants.
“Uganda, with a population of over 37 million and a penetration rate of 50%, was well within the criteria we had set to further expand in Africa, targeting high potential and high growth markets” says Ziad Dalloul, Chairman and CEO of the Africell Group.
According to the company, Africell is still looking to add one more market to its portfolio before the end 2015, to further expand and diversify its portfolio to cover West, Central and East Africa.
Africell holds a dominant market share in Gambia and Sierra Leone and was able to achieve a 20% market share in the Democratic Republic of Congo in less than two years of operations. The group currently has over 9 million active subscribers and forecasted to reach 11 million by year’s end.
“We are confident in achieving a quick turnaround of the operation in Uganda; our operating model has proven that we would be able to offer an attractive proposition to the Ugandan consumer allowing us to quickly climb the market share ladder and bring the operation into profitability,” says Elias Arwadi, COO of the Africell Group.