The MTN Group has partnered with Rocket Internet and Millicom International Cellular in an attempt to expand online retail services in Africa.
The MTN Group has announced a partnership agreement with Rocket Internet and Millicom International Cellular to expand online retail services on the African continent.
MTN, Millicom and Rocket Internet will each become 33.3% shareholders in Africa Internet Holding (AIH), an exclusive vehicle to develop e-commerce businesses across the continent.
‚”We are excited to engage in a strategic partnership with Rocket Internet and Millicom to develop online ventures across the fast growing internet markets of Africa,” says Sifiso Dabengwa, MTN Group President and CEO. “”Rocket Internet’s proven successful track record, coupled with Millicom and MTN’s leading mobile telecommunications position, will allow the partnership to capture the growth potential of the digital media space across our footprint in the region.‚””
Founded in 2012 as a joint venture between Rocket Internet and Millicom International Cellular, AIH has a presence in 13 countries on the continent, including South Africa, Nigeria, Egypt, Morocco, Cote d’Ivoire and Ghana. The company has developed several successful e-commerce ventures in the last 18 months, including Jumia, Zando, Kaymu, Jovago, Lamudi, Carmudi, Easytaxi and Hellofood.
‚””We are pleased to welcome MTN as a strategic partner to accelerate the growth of our online alliance in Africa,”” saidMillicom President and CEO, Hans-Holger Albrecht.
“”It is a significant vote of confidence in its future. Between us we have more than 220 million mobile customers in the continent with very limited overlap. MTN is the leader in Nigeria and South Africa, the largest markets for AIH currently, while Millicom contributes through its leading positions in our markets, combined with one of the most innovative product offerings.‚””
The partnership brings together Rocket Internet’s expertise in developing successful global internet business models, and Millicom and MTN’s leadership position and knowledge of the local telecom markets.
‚””The strategic partnership between Rocket Internet, Millicom and MTN will enable AIH to reach more consumers with better services,”” said Oliver Samwer, Co-Founder of Rocket Internet. “”We feel very strongly about AIH’s existing and future ventures in Africa and look forward to working with our new partner.‚””
The investment is subject to regulatory approval, and the transaction is expected to close during the second quarter of 2014.
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