December 11, 2017 IBOMLLC Team

Bharti Airtel could exit Kenya, Rwanda, and Tanzania telecom space

Innov8tiv – Blacks In Technology in USA, UK, Caribbean Islands & Africa

In Kenya, Bharti Airtel is finding the telecom ‘waters rough’ mainly because of the dominance of Safaricom. Simply put, Airtel cannot profitably compete against Safaricom under the prevailing circumstances.

It would seem the ‘waters are rough’ on Airtel not just in Kenya, but also in Rwanda and Tanzania. According to Goldman Sachs, Airtel return on investment in the three countries is significantly lower compared to the current average return it gets across other African countries.

Sunil Mittal, the Founder and Chairman of Bharti Enterprises is reported by the Economic Times to have said the telecom is currently actively engaged in exploring options of either purchase, merger, or intra-country sale of its businesses in Kenya, Rwanda, and Tanzania. Mittal says such a move will significantly reduce leverage and increase margins.

Though it is no new news in Kenya, Airtel Kenya has been showing all the possible signs that it will pull out of the country soon. Sometimes there are mixed signals, as in the Q3 of 2016, Airtel Kenya reiterated its commitment to the Kenyan market and had recorded positive revenues in that period. The telecom further said …read more

Read more here:: Bharti Airtel could exit Kenya, Rwanda, and Tanzania telecom space



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