- February 28, 2019
- Posted by: Myles Freedman
- Category: Finance, More Africa News, Networks
The Orange mobile operator is currently facing financial difficulties in its Niger market.
To this end, the company was forced to open a procedure for preventive settlement as evidenced by Ordinance No. 029 of 20 February 2019 of the President of the Commercial Court of Niamey.
According to the uniform act organizing collective procedures for the clearance of liabilities of the Organization for the Harmonization of Business Law in Africa (Ohada), of which Niger is a member, the preventive regulation is open to an undertaking which, without being in a state of cessation of payments, justifies serious financial or economic difficulties.
For the confidential of Africa , this measure is in fact only the prelude to a liquidation of the Nigerian subsidiary by Orange who would look for a buyer who will be presented to the government as soon as possible.
In its financial report for the year ended December 31, 2018, the Orange Group recognizes that the last two years have been difficult. It reveals that the uncertain political and economic context and the effects of a strong tax and regulatory pressure caused the depreciation of 52 million euros of fixed assets in 2017.
In 2018, the company reports that the telecommunications market continued to suffer a loss in value in a business environment that remained difficult. The company has experienced a depreciation of its fixed assets of 43 million euros.
One of the consequences of the financial difficulties faced by Orange Niger during 2018, was the tax adjustment of more than 22 billion CFA francs, which represents almost half of its annual turnover and the issue on 29 November, of an order closing its premises in Niamey.