Kuwait-based telecoms group Zain is looking to increase its presence in the North African market, its CEO said, as the region continues to face a difficult political and economic climate.
In an interview with Reuters, Scott Gegenheimer described North …
Kuwait-based telecoms group Zain is looking to increase its presence in the North African market, its CEO said, as the region continues to face a difficult political and economic climate.
In an interview with Reuters, Scott Gegenheimer described North Africa as a good fit for the company’s portfolio, “in terms of branding and operational synergies”.
Zain is present in eight Middle Eastern countries and previously had a strong presence in sub-Saharan Africa, with more than 14 subsidiaries.
But in 2010 it sold almost all its African operations to Indian giant Bharti Airtel in a US$10.7bn deal. Zain still has a stake in Moroccan mobile operator Inwi and is looking to increase its holding, Gegenheimer said.
The CEO also said his company is looking at Tunisia, Algeria as well as Egypt, despite intense competition among mobile players. Zain’s expansion in those countries could take the form of acquisitions or management contracts, he noted.
In Tunisia, Emirates International Telecommunications (EIT) is currently seeking to sell its 35% stake in incumbent Tunisie Telecom. Meanwhile in Morocco, French conglomerate Vivendi is in talks with UAE’s Etisalat to offload its 53% stake in Maroc Telecom.
Another interesting market for Zain is Libya, Gegenheimer said. However, he pointed out that the operator “wouldn’t blindly go into any operation”.
The Libyan government is planning to list its two state-owned mobile operators, Libyana and Al Madar, by the end of 2014. The country is also looking to issue the first private mobile licence next year – almost three years after the end of its civil war.
Gegenheimer also said he expects most deals in the sector to come from telcos acquiring companies in adjacent industries, such as ISPs and data centres. He believes mobile operators will need to look more and more at partnerships with OTT services providers, such as Skype. Gegenheimer concluded saying that, over the next five years, Zain will evolve from being a mobile operator to becoming an integrated player by expanding into fibre networks and providing services to corporations.
