The company is seeking to consolidate its position in the rapidly expanding African telecoms market. With this in mind, it has undergone a change of corporate identity in November 2024, affecting its operations in Madagascar, the Comoros, Senegal, Togo, and Tanzania.
Pan-African telecommunications group Axian Telecom plans to invest $82 million in Madagascar, Tanzania, and the Comoros by 2030. This investment is primarily aimed at expanding 4G coverage in these markets to 97% of the population by 2030, while also targeting the addition of 6 million new subscribers.
The investment was announced on Tuesday, March 25, by the International Telecommunication Union (ITU). It is part of the Partner2Connect initiative, which mobilizes commitments to universal connectivity and digital development, with a focus on underserved areas and vulnerable populations.
In Madagascar, 4G coverage represented 33.6% of the population, estimated at 31.2 million in 2023, according to the ITU. In Tanzania, this rate was 79% (out of 66.6 million), compared to 94% (out of 850,387) in the Comoros. Also according to the ITU, only 38.1% of the Malagasy population had a mobile phone in 2023, which represents approximately 19.3 million people without access to mobile telephony. Approximately 190,000 Comorians and 17 million Tanzanians also did not use a mobile phone. Furthermore, the World Mobile Association indicates that approximately 40 million Tanzanians did not have access to mobile internet in 2023.
This digital divide represents a strategic opportunity for Axian Telecom in a context of digital transformation marked by growing demand. If forecasts are realized, the addition of 6 million new customers could enable the company to increase service consumption and, in turn, its revenue.
However, Axian Telecom will face intense competition in these markets. In Madagascar, it competes with Orange and Airtel. In the Comoros, the company competes with the incumbent operator Comores Telecom. In Tanzania, Axian Telecom held a 30% market share as of December 31, 2024, just behind Vodacom’s 31%. The rest of the Tanzanian market is shared between Airtel, Halotel, and the incumbent operator TTCL.
With this ambitious investment, Axian Telecom seeks to become a key player in the African telecom landscape while responding to the challenges related to digital inclusion.
Source: Extensia
