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Africell

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Africell Group
new Africell logo colors
TypePrivate limited company
Operating marketsThe Gambia
Sierra Leone
Democratic Republic of the Congo
Angola
Founded2001
HeadquartersLondon, UK
Key People
  • Ziad Dalloul
    Group Chairman and CEO
IndustryTelecommunications
ProductsMobile telephony
Internet services
Mobile money
IncorporatedUK
Websitewww.africell.com

Africell Group is a mobile technology company providing voice, messaging, data, mobile money and other integrated telecoms services to over 16 million subscribers across Africa.

Company overview

Africell was founded in 2001. It has US ownership[1] and is headquartered in London, United Kingdom. The company has approximately 10,000 direct and outsourced employees and currently operates in four countries – The Gambia, Sierra Leone, Democratic Republic of Congo and Angola.

Africell is a market leader in The Gambia and Sierra Leone, with approximately 60% market share of the telecoms sectors in each. In Democratic Republic of Congo, Africell has between 20-25% market share in the provinces in which it is active. There has been significant subscriber growth in all markets since 2010.[2] As of August 2022, Africell has over 16 million subscribers.[3] Its Africell Impact Foundation was launched in July 2022.[4]

Africell is among the fastest-growing mobile telecommunications companies in Africa. The group is undergoing rapid expansion due to strong demographic trends in Africa (in terms of age, education, urbanisation and other factors), deepening telecoms penetration in most African countries, and the increasing availability of affordable smartphones.[5] In addition to investing in mobile network operations and telecommunications infrastructure, Africell’s strategy involves developing fintech products and services such as micro-payments, micro-insurance and micro-finance which - in addition to helping individual customers - have a multiplier effect on wider economic growth in Africa.[6][7]

In January 2021, it was announced that Africell had won a competitive international tender process for a telecommunications license in Angola.[8] Africell launched services in Angola in April 2022, the first new or independent operator in two decades to do so.[9]

History

Africell was founded in 2001 by US entrepreneur Ziad Dalloul. Africell launched its first commercial operations in The Gambia in 2001, before entering Sierra Leone in 2005 and building up a solid market leadership position in both West African countries. Since then, Africell Group has expanded south and east, into Democratic Republic of Congo (2012) and Uganda (2014). Africell's strategy is only to move into markets in which it can "make a positive difference" in terms of reducing prices, covering more territory, and improving internet speed and reliability.[10] In January 2021, after winning a transparent and competitive international public tender process, Africell declared its plans to establish a mobile network and start commercial operations in Angola by the end of 2021.[11] Africell ended services in Uganda in October 2021, having been present in the country since 2014.[12]

In 2018, it was announced that Africell group had secured a $100m loan facility from the US Government’s International Development Finance Corporation (DFC).[13] DFC's substantial investment in Africell followed a strict due diligence process and reflects a policy goal of the US government to significantly increase its commercial investments in Africa.[14] In May 2022, Secretary of State Antony Blinken highlighted Africell as an example of US investment in sub-Saharan Africa making "real impact" and advancing "security and transparency" in the region.

An Africell sign in Kinshasa, Democratic Republic of the Congo

Africell launched the Africell Impact Foundation in June 2022.

Operations

Africell is the predominant mobile network provider in The Gambia and Sierra Leone and is poised for rapid growth Democratic Republic of Congo and Angola, both of which are considered high growth-potential markets for the African telecoms sector. Africell's activity is directed from its group headquarters in London.

Africell Group footprint
Country Launch date Market share
The Gambia The Gambia 2001 >60%
Sierra Leone Sierra Leone 2005 >60%
Democratic Republic of the Congo Democratic Republic of Congo 2012 20-25% (in active provinces)
Angola Angola 2022 ~
United Kingdom United Kingdom* ~ ~
United States United States* ~ ~
United Arab Emirates United Arab Emirates* ~ ~
An Africell community healthcare initiative in Banjul, The Gambia, July 2022
Africell's headquarters in Luanda, Angola's capital and largest urban centre.

The Gambia

Africell launched operations in Gambia in 2001. Africell has been the market leader in the country since 2006 in terms of the number of subscribers, and it boasts 93% territorial coverage.[15] Africell offers 2G, 3G and 4G services in Gambia and the country is the Africell operating market with the highest percentage penetration of data services. Africell is well-respected in Gambia, both as a mobile network provider and as a significant private sector employer, and the company known to have the widest coverage and the highest quality network structure with services available to almost 100% of the Gambian population.

Sierra Leone

Africell's flagship customer care centre in an historic old cinema building in Freetown, Sierra Leone

Africell launched commercial operations in Sierra Leone in 2005. The company extended its footprint further in 2009 through the acquisition of Tigo Sierra Leone. Today, Africell’s network covers more than 92% of the population. Africell has been the market leader in Sierra Leone since 2009, with approximately 4.2 million active subscribers and an extensive portfolio of 3G and 4G services. Africell's growth in Sierra Leone is driven by increasing data revenues, robust commercial promotions with data products accounting for a steadily increasing share of customer recharges over time.

During the Ebola epidemic which struck Sierra Leone and other West African states between 2014–16,[16] Africell played a prominent role as a local private sector partner to the government and international agencies battling the virus on the ground,[17] deploying its hardware, telecommunications services, media platforms and distribution network to support the anti-Ebola campaign. Africell has earned a reputation in the nation as the premier company in terms of meeting their corporate social responsibilities. However, this has created much needed attention in the area they operate.[18]

Democratic Republic of Congo

Africell launched services in Democratic Republic of Congo in 2012, since which date the company has acquired over 4 million active subscribers. Africell currently offers 2G, 3G and 4G coverage in the metropolitan and population-dense provinces of Kinshasa, Kongo Central and Haut-Katanga, and plans to expand into new provinces in 2021 and beyond.

An Africell facility in Democratic Republic of the Congo

Uganda

Africell entered Uganda by acquiring Orange Uganda in November 2014.[19] Following the transaction, Africell doubled its number of active subscribers and eventually served c. 1.1 million active subscribers 3G and 4G services. Africell ended services in Uganda in October 2021 after announcing a strategic reorientation of the Group towards more impactful and higher-growth market opportunities in west and central Africa.

Angola

In January 2021, following a competitive international public tender process for a Unified Communications Service License in Angola, Africell was named by the Angolan government as the winning bidder. At the time of the award, Africell stated an intention to start commercial operations in the country in 2022, which it did in April 2022. The entry of Africell Group (an experienced private international operator) into the telecoms sector in Angola will have a positive impact on the market as a result of more competition, better pricing, and improved network quality. In July 2021 Africell announced a major partnership with Nokia, under the terms of which the Finnish company is its main supplier of network equipment in Angola.[20] Africell is projected to create several thousand local jobs within five years [21] and help liberalise an economy which (some have argued) has historically been inhospitable to overseas investment.[22] In May 2022 U.S. Deputy Secretary of State Wendy R. Sherman visited Africell's office in Luanda, Angola, during a diplomatic tour of southern Africa, describing Africell's activities in Angola as "phenomenal" and commending the company for providing digital skills and jobs to young Angolans.[23] Africell's 5G network - the first in Angola - was activated in July 2022.[24]

An Africell store in Angola

References

  1. ^ Karombo, Tawanda. "Here is what Africa's telecom sector is doing with its booming global funding". Quartz. Retrieved 2022-05-19.
  2. ^ "Africell Group | Company Profiles". Africa Outlook Magazine. Retrieved 2021-03-06.
  3. ^ "Gemcorp to Invest $10 Billion in Private Credit Push Into Africa". Bloomberg.com. 2022-04-22. Retrieved 2022-04-22.
  4. ^ "Africell launches Impact Foundation - The Point". thepoint.gm. Retrieved 2022-08-26.
  5. ^ "African telecoms – special report". African Business. Retrieved 2021-03-06.
  6. ^ Biryabarema, Elias (2019-07-26). "Africell to spend $100 mln on mobile infrastructure, fintech in Africa". Reuters. Retrieved 2021-03-06.
  7. ^ "Africell plots mobile money boost, Angola expansion". Mobile World Live. 2019-07-29. Retrieved 2021-03-06.
  8. ^ "Africell formalizou esta manhã posição de quarto operador em Angola". Expansão (in Portuguese). Retrieved 2021-03-06.
  9. ^ Booth, Nick (2022-05-18). "Africell leapfrogs Movicel into second place in Angola". Mobile Europe. Retrieved 2022-05-19.
  10. ^ Biryabarema, Elias (2019-07-26). "Africell to spend $100 mln on mobile infrastructure, fintech in Africa". Reuters. Retrieved 2021-03-06.
  11. ^ "Africell Angola network to be live by end of the year". Totaltelecom. Retrieved 2021-03-06.
  12. ^ Biryabarema, Elias (7 September 2021). "Africell to exit Ugandan telecoms after battle with South Africa's MTN". Nasdaq. Archived from the original on 2021-09-08. Retrieved 20 September 2021.
  13. ^ Reuters Staff (2018-11-09). "U.S. OPIC signs $100 million loan deal with Africell". Reuters. Retrieved 2021-03-06. {{cite news}}: |author= has generic name (help)
  14. ^ "U.S. Agency to Double Africa Spending to Counter China's Reach". Bloomberg.com. 2019-04-04. Retrieved 2021-03-06.
  15. ^ "'Africell has the largest market share in Gambia telecoms' - The Point". thepoint.gm. Retrieved 2021-03-06.
  16. ^ "Ebola outbreak: Sierra Leone declared free of disease". BBC News. 2015-11-07. Retrieved 2021-03-06.
  17. ^ "Lifeline | Brunswick". www.brunswickgroup.com. Retrieved 2021-03-06.
  18. ^ james Yamana conteh
  19. ^ Zekaria, Simon (2014-08-14). "In Africa, a Telco Disruptor Looks for Gaps Amongst Giants". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-03-06.
  20. ^ "Africell taps Nokia for Angola entry". Mobile World Live. 2021-07-12. Retrieved 2021-09-20.
  21. ^ Reuters Staff (2021-02-03). "Mobile operator Africell secures Angolan telco licence". Reuters. Retrieved 2021-03-06. {{cite news}}: |author= has generic name (help)
  22. ^ "Angola's Telecoms Liberalization Takes Off As Africell Buys License". weetracker.com. Retrieved 2021-03-06.
  23. ^ "Digital Briefing with Deputy Secretary of State, Wendy Sherman". United States Department of State. Retrieved 2022-08-26.
  24. ^ Africell. "Africell". www.africell.com. Retrieved 2022-08-26.
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