Sunday, 05 July 2020

Orange considers expansion into Nigeria & South Africa

by Harry Baldock, Total Telecom
Wednesday 17 June 20

The operator said the markets were very exciting and that it would benefit from further African expansion

Orange already has a significant footprint in Africa and the Middle East, operating in 18 countries in those regions, but they could their sights set on a nice round 20 with the possible addition of Nigeria and South Africa to their portfolio.   Speaking to French newspaper Les Echos, Orange CEO Stephane Richard said that the potential growth of these markets was considerable and warranted their investment…

Orange already has a significant footprint in Africa and the Middle East, operating in 18 countries in those regions, but they could their sights set on a nice round 20 with the possible addition of Nigeria and South Africa to their portfolio.

 

Speaking to French newspaper Les Echos, Orange CEO Stephane Richard said that the potential growth of these markets was considerable and warranted their investment. Much of the company’s current revenue from the MEA region comes from the success of Orange Money, with the fintech expected increase further as a key asset for the operator. 

 

“It could make sense to be in economies such as Nigeria and South Africa. If one considers there are things to do, the time frame I am considering is rather a few months than a few years,” he said.

 

Orange had originally left the South African market, where it was offering retail and mobile repair services only, back in 2016, but now seems excited to enter the market more completely. Limited spectrum availability has been a deterrent to foreign operators, but it seems that Orange is unperturbed. 

 

In a similar vein, rumours have been circulating that the French giant is interested in buying a stake in South African operator MTN, but no further information has been forthcoming. The two operators have worked together recently on the mobile payment company Mowali, as well as being partners in the consortium to build the upcoming 2Africa subsea cable, set to circumvent the continent.

 

Orange has also had its eyes set on Nigeria for some time. When Etisalat Nigeria was struggling financially in 2017, Orange was reportedly in negotiations to pick up a 65% stake in the company. However, Etisalat ultimately withdrew from the market, taking Orange’s ambitions with it.

 

Further expansion in a time when the economy has been rattled by the coronavirus is a bold and exciting strategy for Orange. The news comes during a time of transformation for the company’s senior executive team; some highlights include the appointment of Jean-François Fallacher, current CEO of Orange Polska, to the role of CEO of Orange Spain, while CEO of Orange Belgium, Michael Trabbia has been promoted to chief technology and information officer as well as the executive board. 

 

Also in the news: 
US money could lock Huawei out of Brazil – and more countries could follow
SoftBank looks to offload T-Mobile shares to decrease debt
UK govt invests £70m in quantum tech projects

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