Millicom sells Tigo, exits African market

Millicom sells Tigo, exits African market

Millicom International Cellular, which trades as Tigo, has announced its complete exit from the African market, following the sale of its operations in Tanzania and its stake in the AirtelTigo joint venture in Ghana.

Financial details of the sale have not been disclosed but Millicom says once the transactions are complete, it will focus on its operations in Latin America.

In Tanzania, Millicom has agreed to sell its entire operations to a consortium led by Axian, a pan-African group that was part of the consortium that acquired Millicom’s operations in Senegal in 2018.

In Ghana, Millicom along with its joint venture partner, Bharti Airtel Limited, have signed a definitive agreement for the transfer of AirtelTigo to the Government of Ghana. Millicom will take a $25 million charge as a result of this agreement. 

Millicom CEO, Mauricio Ramos said, “With today’s announcement that we are divesting our remaining African businesses, we close a chapter in our history and open another solely focused on the Latin American region.”

Millicom, founded in 1990 is a provider of cable and mobile services dedicated to emerging markets in Latin America and Africa, trading through the brand name Tigo.

Tigo officials in Tanzania have yet to comment on the exit which Millicom did not give a timeline for its completion.

Tigo is Tanzania’s second-largest telecommunications operator after Vodacom with over 13 million subscribers as at end of December 2020.