Airtel Money Commerce (AMC), a subsidiary of Airtel Africa, has secured $200m from Qatar Investment Authority. This follows the recent $200 million investment by TPG’s The Rise Fund and the $100 million investment by MasterCard.
AMC BV is the holding company for several of Airtel Africa’s mobile money operations; and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
QIA will invest USD200 million through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages. USD150m will be invested at first close, subject to customary closing conditions including necessary regulatory filings, with USD50m to be invested at second close once further transfers of certain mobile money operations and contracts into the AMC BV perimeter have been completed.
This transaction is a continuation of the Group’s pursuit of strategic asset monetisation and investment opportunities and the proceeds will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.
Raghunath Mandava, CEO of Airtel Africa, says: “With today’s announcement we are pleased to welcome QIA as a prospective investor in our mobile money business, joining both Mastercard and TPG’s The Rise Fund as a further partner to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.”
Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, says: “We are delighted to build on our support of Airtel Africa in promoting financial inclusion to the large and growing population of Sub-Saharan Africa. Airtel Money plays a critical role in facilitating economic activity, including for customers without access to traditional financial services. We firmly believe in its mission to expand these efforts over the coming years.”
Mobile money services are available across Airtel Africa’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence. It is the intention that all mobile money operations will be owned and operated by AMC BV.
