Axian Telecom completes majority acquisition of Free Senegal

Madagascar's Axian Telecom has finalized its acquisition of additional shares in Senegalese telecoms operator Free.

Axian Telecom bought a further 40% stake in Free, taking its total ownership up to 80% as a way to consolidate operations.

"This strategic investment is a great milestone in our growth journey. It reflects Axian Telecom's unwavering confidence in Senegal's thriving economy and bolsters its footprint in West Africa," said Axian Telecom Chairman Hassanein Hiridjee in a statement.

"Together with our colleagues in Senegal, we remain steadfast in our commitment to invigorating the country's telecommunications ecosystem, accelerating digital inclusion and empowering Senegalese with cutting-edge mobile solutions," Hiridjee explained.

The initial plan to acquire additional shares in Senegal's Free was announced in July 2023, but was subject to approval from the authorities in Senegal.

Axian Telecom said Free offers fast and reliable 4G+ network access and fiber, enabling Senegal's people and businesses to benefit from quality, affordable connectivity and to participate in the digital economy more meaningfully.

Axian Telecom has bought a further 40% stake in in Free in Senegal, taking its total ownership up to 80%. (Source: Image by pch.vector on Freepik)

"This transaction underscores the significance of Free Senegal as a key player in the market and its pivotal role in transforming Senegal's telecommunications landscape," said Free Senegal CEO Mamadou Mbengue.

"Together, we are strongly positioned to drive forward the digital transformation agenda, focusing on deploying relevant technologies to ensure an enhanced experience for individuals and businesses alike," the CEO continued.

Senegal's telecom ecosystem

The completion of the deal comes at a time when the West African country moves forward with plans to launch 5G technology.

In July 2023, Senegal's telecom regulator (L'Autorite de Regulation des Telecommunications et des Postes, or ARTP) granted a provisional 5G license to Sonatel (Orange Senegal).

In May 2023, the regulator announced that it would allocate 5G licenses to telecom operators by the end of July. ARTP officially called for applications from those interested in obtaining 5G licenses in June.

Sonatel first tested 5G in Senegal in November 2020 and ran a second 5G trial in December 2021. Free Senegal also launched an experimental phase of 5G in June 2022.

However, in March 2023, ARTP instructed Sonatel and Free to halt their network trials and submit a progress report to the regulator.

Senegal's mobile mix

It will be interesting to see how the completion of Free Senegal deal will impact the country's mobile subscriber numbers. According to statistics from market research company Omdia, a sister company of Connecting Africa, Free Senegal is the second biggest mobile operator with almost 5.2 million users at the end of the second quarter of 2023.

The country's biggest operator Sonatel had around 12.3 million mobile users around the same time. Omdia further reported that Expresso Senegal, which is the third largest operator, had almost 4 million mobile customers. This leaves smaller operators Promobile – which had around 433,000 mobile users in the first quarter of 2023 – and Hayo Telecom, which had just 360 subscribers.

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*Top image source: Image by qalebstudio on Freepik

— Matshepo Sehloho, Associate Editor, Connecting Africa