Orange, France’s largest telecom operator, is considering a move into two of the largest economies in Africa – Nigeria and South Africa.
According to Orange Chief Executive Stephane Richard in Les Echos, a daily French financial newspaper, “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 added.
He however did not give any hint on the method of incursion into these two countries which are clearly dominated by the South African MTN Group. Though he declined to comment on a possible interest in the South African company.
Orange is currently present in 18 countries across Middle East and Africa. The telecoms company has 266 million customers worldwide with Orange Money, its mobile money service being a major growth driver for its operations in Africa and Middle East, and the service continued to be extended with the launch of the service in Morocco in March 2020. It has 39.2 million subscribers to Orange Money.
In Nigeria, Orange does not have a mobile telecoms operating license in Nigeria but it has a presence in Nigeria. In 2016, Orange Group opened its B2B division, Orange Business Services, to support senior IT decision makers with strategies to grasp the market opportunities being brought by digital transformation.
It is not yet clear how Orange intends to enter into Nigeria. It is rumoured that it invested in 9Mobile so it true, it could increase its stake in Nigeria through this vehicle. Would it acquire Airtel’s operations in Nigeria as it has done in some other countries? Or would it go for the MTN Nigeria’s parent body and acquire all its operations in Africa? The fourth option might be a fresh start, by obtaining a fresh license?
One thing is for sure. With Orange’s eyes set on these two countries, it should bring more excitement in the telco landscapes.
