Moroccan telco Maroc Telecom has confirmed its acquisition of the entire share capital of Tigo Chad, following a successful deal with Millicom.
The acquisition forms part of Maroc Telecom’s plan to expand operations in North Central Africa, while Millicom focuses its efforts on Latin America.
A statement from Maro Telcom reads: “This acquisition, which is part of its international development strategy, aims to expand and consolidate the Maroc Telecom Group’s presence in the region.”
At the same time Millicom issued a statement which reads: “Millicom has signed an agreement for the sale of its entire operations in Chad to Maroc Telecom. The completion of the transaction is subject to the approval of the Chadian authorities.”
On 19 February 2019, the president of Chad, Idriss Deby hosted Maroc Telecom Group Chairman Abdeslam Ahizoune and discussed Maroc Telecom’s entry into Chad’s telecommunications market.
Millicom looked likely to exit in Chad in 2018, and in July of that year media reports indicated that Millicom and Airtel were considering this move as a result of government-ordered service disruptions and the industry’s high tariffs.
In 2017, the government introduced a new 18% tax on telecom services which reportedly affected customer spend and operator revenue.
Millicom’s operations in Chad began in 2005 through its subsidiary Tigo. The path of the company intersected with that of Maroc Telecom in 2017 when Maroc Telecom’s former regional director Kamal Okba, was appointed CEO of Tigo Chad on 16 February, 2017.
In June 2015, ITWeb Africa reported Millicom was on an expansion trail in Africa. But two years later, it became increasingly clear that the Group was downscaling its footprint on the continent when it announced new buyers for Tigo Senegal.
Millicom has also sold its operations in Rwanda and completed a merger in Ghana.