Axian to buy controlling stake in Free Senegal

Axian Telecom has signed a deal to buy a further 40% stake in Senegalese telecom operator Free, taking its total ownership up to 80% as a way to consolidate operations.

However, the transaction is still subject to customary closing conditions, which include the approval of relevant authorities in Senegal, the company said in a statement.

"This additional investment reflects our continued confidence in the thriving economy of Senegal, and increases our footprint in West African markets," said Axian Telecom Chairman Hassanein Hiridjee.

Previously branded as Tigo, Free Senegal was bought by Axian Telecom and its partners in the Saga Africa Holdings consortium from Millicom in 2018.

Other members of the consortium were NJJ Capital, controlled by Iliad founder Xavier Niel and Teyliom Group.

An initial 40% stake in Free Senegal was bought by Axian Telecom and its partners in the Saga Africa Holdings consortium from Millicom in 2018. (Source: Image by Freepik)

Hiridjee thanked the company's partners for their important role in developing Free in Senegal since 2018 and for their support for this transaction.

"With the strong commitment of all our colleagues in Senegal, we will continue to energize Senegal's telecommunications ecosystem, with a focus on deploying cutting-edge technologies and ensuring a better experience for individuals and businesses," the chairman continued.

Senegal's telecom industry

Axian's acquisition of Free Senegal comes at a time when the West African country moves forward with plans to launch 5G technology.

Last week, 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, and in June officially called for applications from those interested in obtaining 5G licenses.

Senegal's 5G progression

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.

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 million users at the end of March 2023.

The telco's numbers are surpassed by the country's biggest operator Sonatel which had around 11.7 million mobile users around the same period.

Omdia further reported that Expresso Senegal, which is the third largest operator, had over 3.8 million mobile customers.

This leaves smaller operators Promobile – which had around 448,000 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 www.slon.pics on Freepik.

— Matshepo Sehloho, Associate Editor, Connecting Africa