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Telecom Titan Axian Conquers East Africa with Wananchi Acquisition!

Published 4 hours ago5 minute read
Telecom Titan Axian Conquers East Africa with Wananchi Acquisition!

The African digital economy is witnessing a significant wave of strategic investments and innovative solutions aimed at bolstering infrastructure and empowering its vast talent pool. Recent developments highlight major movements in the telecommunications sector, with a focus on fibre optic expansion and tower infrastructure, alongside the emergence of platforms dedicated to improving opportunities for African freelancers on the global stage.

One of the most defining moves comes from Axian Telecom Fibre, known as Yas in East Africa, which has boldly entered the region’s broadband market. The company recently completed the acquisition of a 99.63% stake in Wananchi Group, the parent company behind prominent East African brands like Zuku (for homes) and Simbanet (for enterprises). This substantial deal marks Axian’s most assertive play yet in East Africa’s rapidly expanding fixed Internet landscape, positioning it to directly challenge established players such as Safaricom, Liquid Home, and SEACOM. With a current footprint connecting over a million homes across Africa, Axian’s acquisition strategy is driven by the burgeoning demand for broadband in East Africa, where infrastructure growth has struggled to keep pace. By acquiring Wananchi, Axian gains immediate access to crucial markets including Kenya, Tanzania, Uganda, and Malawi, regions experiencing accelerated fibre growth. Wananchi’s brands will now operate under Yas, with Axian committing to integrate them into its regional fibre systems and inject new investments to expand Fibre-to-the-Home (FTTH), Software-Defined Wide Area Network (SD-WAN), and cloud services. The transition is expected to maintain job stability and customer service continuity, as Axian merges its Tanzanian operations with Wananchi's existing setup. Industry observers commend this as a calculated and intelligent entry, circumventing the years and massive capital required to build a new fibre network from scratch. Analysts anticipate Axian’s entry to introduce competitive pricing and service offerings, particularly in Kenya, where home broadband competition is intensifying. This move is integral to a broader continental competition among telecom players vying for control over fibre backbones and last-mile connectivity amidst rocketing data consumption. Axian’s CEO, Hassan Jaber, underscored that the deal aligns with the group’s vision to become a continental broadband leader, viewing East Africa as the next major growth frontier and a potential gateway to Rwanda, Zambia, and Burundi in the near future. This acquisition could well be one of the decade's most significant telecom deals, shaping Africa's Internet infrastructure development through consolidation, regional integration, and deep investment, rather than fragmented rollouts.

Simultaneously, a new platform named Growwr is actively working to ensure fair compensation and opportunities for African freelancers. Founded in 2024 by two Nigerian entrepreneurs, Growwr emerged from a deep-seated frustration over African professionals being disadvantaged in global freelancing due to their geographical location, leading to payment delays, unfair rates, and missed opportunities. Co-founder Obinna Umeh’s personal journey, which included losing a $50,000 contract because his Nigerian residency prevented him from receiving payments requiring a US Social Security Number, catalyzed the platform's creation. He collaborated with Emmanuel Ajayi, a software engineer, to build an AI-powered freelance and talent platform designed to level the playing field. Extensive research conducted by the founders before Growwr’s launch revealed alarming statistics: over 70% of freelancers reported payment delays, some waiting up to three months, while 16% never received payment at all. African companies also faced challenges in hiring tech and creative talent, often experiencing underperforming hires or abandoned contracts. Since its official launch in May 2024, Growwr has rapidly expanded its reach to 13 countries, including Nigeria, Ghana, South Africa, Egypt, and Uganda, and has already facilitated over $1.5 million in payments to freelancers. This initiative represents a significant step towards rewriting the narrative for African freelancers, ensuring they are recognized and fairly compensated for their skills.

Further bolstering the continent's digital infrastructure, French investor Stoa S.A.S. has made a strategic acquisition in Kenya, purchasing Atlas Kenya for approximately $27 million (₦3.5 billion), with approval from the Competition Authority of Kenya. This transaction stands as one of Kenya’s largest telecom infrastructure deals this year, signaling robust foreign investor confidence in the nation’s burgeoning digital economy. Atlas Kenya, a key player since 2019, operates over 450 telecom towers across the country, providing critical infrastructure for major networks like Safaricom, Airtel, and Telkom Kenya in both urban and rural areas. With Stoa's investment, Atlas Kenya plans to accelerate its tower expansion and integrate more solar-powered systems to enhance network reliability and environmental sustainability. This deal underscores a wider trend in Africa where telecom operators are adopting a leaner operational model, outsourcing tower management to independent infrastructure firms, thereby enabling them to concentrate on improving core services. Stoa, specializing in infrastructure and renewable energy projects in emerging markets, views this acquisition as perfectly aligned with its commitment to developing cleaner, more efficient digital networks. The investment will also empower Atlas Kenya to extend its reach into underserved regions, effectively bridging connectivity gaps and improving data access for millions. Randl Clendennen, CEO of Atlas Kenya, described the acquisition as a "transformational step," with plans, backed by earlier support from the International Finance Corporation, to scale operations faster and evolve telecom towers to be smarter, greener, and more reliable, intensifying competition and innovation in Kenya's telecom sector.

These concurrent developments—Axian’s strategic fibre consolidation, Growwr’s empowerment of African freelance talent, and Stoa’s infrastructure investment—collectively paint a picture of a dynamic African tech landscape. They highlight a clear trend towards regional integration, significant capital injection into critical digital infrastructure, and innovative approaches to foster inclusive economic opportunities across the continent. These efforts are not merely transactions but foundational steps towards a more connected, empowered, and digitally advanced Africa.

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