Dar es Salaam — Axian Group of Madagascar is buying Tigo and Zantel in Tanzania in a move that is expected to further whip up competition in the country's telecommunications sector.
Although the transaction, whose value has yet to be revealed, is subject to customary closing conditions and regulatory approvals, the Antananarivo-based firm is already promising to make "significant investment" in Tanzania and Zanzibar during the next five years.
Tanzania will be Axian's first excursion into an Anglophone country, where the firm plans to invest $400 million (Sh920 billion) in five years.
"We already have shared infrastructure. We're very much interested in this market, which is not far from our home market," Axian chief executive Hassanein Hiridjee said.
In the statement posted on its website (https://www.axian-group.com), the company says, "It (the consortium) intends to revolutionize the telecommunications ecosystem by placing customers and their needs at the core of their business while at the same time strengthening the quality and scope of the network's coverage and associated services."
The company said it would have four main strategic priorities in Tanzania and Zanzibar, including significantly increasing 4G network coverage for both Tigo Tanzania and Zantel.