11 °c
London
Wednesday, April 14, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

The Rise Fund to invest US$200M in Airtel Africa’s US$2.65B mobile money business

Taarifa Rwanda by Taarifa Rwanda
March 19, 2021
in Africa, Finance, Financial Inclusion, Impact Investment, Investing, Mobile, Rwanda
Reading Time: 2 mins read
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Airtel Africa has signed an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest US$200M in Airtel Mobile Commerce BV (“AMC BV”), a wholly-owned subsidiary of Airtel Africa plc (the “Transaction”).

AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

The Transaction values Airtel Africa’s mobile money business at US$2.65B on a cash and debt-free basis.

The Rise Fund will hold a minority stake in AMC BV upon completion of the Transaction, with Airtel Africa continuing to hold the remaining majority stake.

The Transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV.

Also read: Airtel hits 14% growth in revenues to US$659M in East Africa

The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.

The Group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV.

There can be no certainty that a transaction will be concluded or as to the final terms of any transactions. The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

Airtel Africa mobile money services Operating under the Airtel Money brand, Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa (characterised by limited access to formal financial institutions with limited banking infrastructure) and includes mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card and international money transfers.

Mobile money services are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence.

It is the intention that all mobile money operations will be owned and operated by AMC BV. In our most recent reported results for Q3, the mobile money service segment (corresponding to all the businesses that are intended to be transferred to AMC BV) delivered a strong operational performance:

• Generated revenue of US$110M (US$440M annualised), and underlying EBITDA of US$54M (US$216M annualised) at a margin of 48.7%.

• Year on year revenue growth for the quarter was 41.1% in constant currency, largely driven by 29% growth in the customer base to 21.5 million, and 9.7% ARPU growth.


Taarifa Rwanda

Related

Tags: africaAirtel Africadigital economyFinanceFinancial Inclusionimpact investingmobileMobile MoneyThe Rise FundThe Rise Fund to invest US$200M in Airtel Africa’s US$2.65B mobile money businessафрикаأفريقياアフリカ非洲
ScanSendShare330Tweet206Share58Pin74Send
Previous Post

Meet Samia Suluhu, Tanzania’s first female President

Next Post

Africa Oil & Power and AFROCOM in partnership to drive Russian investment in Africa

Taarifa Rwanda

Taarifa Rwanda

Taarifa is a Rwandan news media house established to play a role in shaping the global agenda through telling Africa’s true stories by delivering quick, in-depth and exclusive news on issues and events affecting Africa’s political, economic and social landscape.

Related Posts

Business tourism benefits from new measures in Angola
Aviation

Embraer aircrafts have become key for Kenya Airways

by Staff
April 14, 2021
South African investment opening previously closed markets in Mozambique
Mozambique

South African investment opening previously closed markets in Mozambique

by Staff
April 14, 2021
Census of Companies in Angola funded by the World Bank
Legal

Angola: Fees to be charged by the Data Protection Agency

by Duarte Marques da Cruz
April 14, 2021
Farming

Zimbabwe: Tobacco farmers earn US$9M in 3 days

by Staff
April 14, 2021
Egypt seizes Suez canal ship ‘Ever Given’ pending US$916M compensation
Logistics

Egypt seizes Suez canal ship ‘Ever Given’ pending US$916M compensation

by Staff
April 14, 2021
Next Post
Russia’s VTB says in talks to prolong Angola’s $1.5 billion loan to 10 years

Africa Oil & Power and AFROCOM in partnership to drive Russian investment in Africa

The cheapest cities to live and work in South Africa

South Africa's central bank to hold repo at record low through 2021

Mozambique Airlines suspends flights to Kenya

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?