Millicom’s merged entity MIC Tanzania PLC (Tigo Tanzania Plc and Zanzibar Telecom) in Tanzania has been acquired by AXIAN Telecom, a pan-African telecommunications services operator owned by Malagasy businessman Hassanein Hiridjee.
The acquisition deal, which is expected to bring in approximately 14 million mobile customers and accelerate the group’s development in Africa, was advised by a consortium led by Hiridjee and Tanzanian tycoon Rostam Azizi, who played a key role in the development of the telecom sector in Tanzania.
The acquisition of MIC Tanzania is the first time an escrow structure has been used for a private firm in Africa, and it underscores Tanzania’s position as a preferred investment destination.
According to Azizi, chairman of MIC Tanzania Plc, the MIC Tanzania team will push the boundaries of digital inclusion while focusing on customized customer solutions for Tanzanian individuals and enterprises through the latest agreement with AXIAN Telecom.
The acquisition of MIC Tanzania, on the other hand, marks a new beginning for AXIAN Telecom in Tanzania, according to Hiridjee.
“We’re excited to embark on this exciting journey with our colleagues here, and I am confident that working together, we will achieve great things and help shape the country’s digital future,” the businessman concluded.
The deal fits perfectly with AXIAN Telecom’s ambitious growth plan, which includes significant investment in Tanzania over the next five years. The merged entity, MIC Tanzania, will strengthen its network coverage and quality of service as it expands its operational footprint to eight African markets.
The current agreement comes roughly two months after the Hassanein Hiridjee-led telecom business successfully launched a $420-million bond campaign to cover its operating capital needs while supporting Africa’s digital development.
Anchor orders from development financing organizations such as the CDC Group, the Emerging Africa Infrastructure Fund, and the International Finance Corporation, a member of the World Bank Group, aided the successful pricing of the five-year bond, which is due in 2027.