Indications emerged that Airtel Africa decided to divest from Airtel Money by selling a minority stake in its mobile financial platform to raise cash which it needed in its expansionary drive across the continent. Airtel Africa has since last year embarked in internally raising funds from existing assets through assets offloading. A source at the company said that the company is actively pursuing the sale of the remaining owned tower sites that sit across several of our operating countries and the group is in discussions with various potential investors in relation to possible minority investments into Airtel Money.
“Discussions are ongoing between the parties and there can be no certainty that a transaction will be concluded or as to the final terms of any transaction,” the source said. Airtel did not disclose the amount it expects to raise. However, its revenues reached $291 million across its markets in 2020.
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“Our mobile money customer base reached 21.5 million, up 29 percent over the previous period, with Airtel Money customers now representing 18 percent of our total customers, an increase of 2.5 percentage points,” the multinational said.
“Mobile money average revenue per user (ARPU) was up 5.1 percent to $1.7 (Sh187), driven by the increase in transaction values and a higher contribution from merchant payments, cash out, person-to-person transfer and recharge of mobile services through Airtel Money.”
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It could be recalled that Airtel Africa paid N71.6 billion to the Nigerian Communications Commission (NCC) to renew its 900 and 1800 MHZ spectrum licence for the next 10 years.
Chief Executive Officer of Airtel Africa, Raghunath Mandava says that their current license was due to expire at the end of November 2021. He goes on to say that the Nigerian market is the “largest market and we remain focused on bridging the digital divide and expanding our broadband capability in the country.”
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“On behalf of Airtel Nigeria and the Group, I would like to thank both the government of Nigeria and the NCC for their cooperation and support in this important process.” The new license is expected to remain valid until 30 November 2031.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry