If there had been any doubt whether the pace of business was slowing down on the back of the global economic meltdown, comments made by Chris Gabriel, CEO of Zain Africa at Africa Com brought the issue clearly into perspective. “We are shopping. We have US$4.5 billion in cash from our rights issue, and we are looking to spend it,” Gabriel declared, stating that over the next 12 months Zain was looking to close three or four acquisitions. “Our strategy is based on building scale, leveraging very high growth markets and the creation of a global brand,” he added.

Africa’s pre-eminent telecoms players assembled in Cape Town for the 11th annual Africa Com event last month, concerned whether the global financial crisis is likely to affect the business in Africa. What became apparent after two days of networking and conversations was that m-banking, falling ARPUs and broadband expansion are that factors that operators on the continent are really concerning themselves with, while the tightening of liquidity is likely to spur further consolidation
However, even operators with the firepower of Zain are finding market conditions hardening, with the Kuwaitlisted operator having seen billions of dollars wiped off its market capitalisation over the last six months as financial markets lose appetite for stocks.
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