· Millicom International Cellular, which trades as Tigo, is planning a complete exit from the African continent.
· The latest move is the sale of its operations in Tanzania and its stake in the AirtelTigo joint venture in Ghana.
Millicom International Cellular, which trades as Tigo, is planning a complete exit from the African continent. Millicom was founded in 1990 and became a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, trading through the brand name Tigo.
The latest move is the sale of its operations in Tanzania and its stake in the AirtelTigo joint venture in Ghana. The Luxembourg-based Telco said that the successful conclusion of the two transactions will facilitate its decision to divest its African operations. Instead, the company has decided to focus on its Latin American markets. Tigo is a leading provider of broadband services to consumers, businesses, and governments in Latin America.
In Tanzania, a consortium led by Axian, a Pan-African group that was part of the consortium will acquire Millicom’s entire operations. The same consortium had acquired Millicom’s operations in Senegal in 2018. Tigo was Tanzania’s second-largest telecommunications operator after Vodacom with over 13 million subscribers as at end of December 2020.
In Ghana, Millicom and its joint venture partner Bharti Airtel Limited have signed an agreement to transfer AirtelTigo to the Government of Ghana. Millicom will receive $25 million charges as a result of this agreement.
Speaking about the agreement, Mauricio Ramos, the chief executive of Millicom said that with the divestment in African businesses, they are closing a chapter in the company’s history to focus solely on the Latin American region.
