Africell is set to invest in expanding its network and also growing its financial technology services like Africell money in Uganda and also its other African subsidiaries where it plans to spend part of a $100 million. This was announced by, chief executive Ziad Dalloul during his visit to their Clement hill Headquarters offices in Uganda.
Ziad Dalloul told Reuters that the money would help fund infrastructure investments for its operations in Uganda, Democratic Republic of Congo, Gambia and Sierra Leone. Critics have come out to say that his money will not be enough if its shared among four countries including DRC which has one of their biggest subscriber base.
With over 15 million subscribers across its four African operations about 4 million from Uganda alone, the company secured the loan in May from the Overseas Private Investment Corporation (OPIC), the U.S. government’s private investment fund.
About $ 35 million to be invested Africell Uganda alone
In his speech to the employees, the Africell CEO was not detailed on how much that will spend on Uganda alone. In comparison, MTN Uganda spends about $ 50 million (Shs200bn) annually in investments and cumulatively over the last 20 years, it has invested over Shs3.7trillion (USD1bn). MTN remains the biggest taxpayer in Uganda with a tax contribution of Shs3.9 trillion since 1998.
Last year, American firm OPIC signed a $35 million (UGX 130 million) contract with Africell. The Overseas Private Investment Corporation said that this is for value addition. OPIC was to invest a total of $59 million (UGX 220 billion) in Uganda’s economy through lending financial capital to private companies including Africell to promote value addition and increase their operational scope.
OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.
Ziad Dalloul yes this new investment will help the company increase its struggling Africell Money (Mobile Money Service), and also micro-insurance and micro-finance.
Expanding to new countries
Africell also wants to expand to other two countries in Africa “We are looking only at markets where we can make a difference,” CEO said, saying this included Angola and Zimbabwe. Africell has $300 million, separate from the OPIC credit line, to spend on a new market like Angola
