MVNO Lyca Group sets sights on African expansion

Lyca Group, a global mobile virtual network operator (MVNO), has announced plans for more investment and growth in the African market.

This is part of a strategic reorganization aimed at streamlining some of its business units and operations, enhancing its digital capabilities, and positioning the company for sustainable growth in what it called "a competitive and challenging global market." 

Lyca said in a statement that it will continue to focus on the growth of its MVNO base and will be investing in new mobile network operator (MNO) opportunities and markets in Africa.

Lyca currently operates in 22 markets globally but only two in Africa – Tunisia and Uganda – with the majority of its operations in Europe.

Lyca used to operate in South Africa but shut down its services in the country in January 2024.

The British company said it plans to announce expansion to new countries during the first quarter of 2025.

It will also launch new digital brands in Spain and the US. 

"The proposed transformation forms part of Lyca's long-term strategy to expand its global business services and support operations into its established service centres as well as new service hubs to be located in territories which have strategic importance while transforming country-specific operations into leaner, sales-focused organisations," the group said in a statement.

Related:Lyca Mobile shuts down in SA

Reorganization in response to competition and rising costs

Lyca said its strategic reorganization is in response to intensifying competition and rising costs across the telecom sector.

The group said it had undertaken a comprehensive review of its operations and business areas to identify opportunities for growth and efficiency.

It is not clear how many job losses the reorganization will include, but the statement's wording alluded to some downsizing.

It said it planned to "streamline operations by consolidating functions, reducing overlaps, and automating processes."

Any cost savings it achieves will be reinvested in market expansion and "customer-focused initiatives."

Lyca said a smaller, more specialized team will remain in London to manage certain limited advisory, compliance and financial functions that require a UK presence.

Other roles will be handled either from existing service centers or at hubs to be established to leverage cost efficiencies and expertise, enabling the business to "reinvest resources into innovation". 

"Lyca is engaging in a thorough consultation process with employees and will work closely with partners to ensure a smooth transition with minimal disruption to the high standards of service and collaboration they have come to expect from Lyca," it said. 

Premananthan Sivasamy, deputy chairman of Lyca Group, called the strategic reorganization "a bold step forward" for the company.

"This paradigm change not only enhances our efficiency but also strengthens our ability to adapt to a rapidly changing industry, ultimately benefiting our customers, partners, and employees globally," Sivasamy said.