Qatar Holding Injects USD 200m Into Airtel Africa’s Mobile Money Business

Airtel Africa has announced the signing of an agreement under which Qatar Holding LLC, an affiliate of the Qatar Investment Authority (QIA), will invest 200 million US dollars in Airtel Mobile Commerce BV (AMC BV), a subsidiary of Airtel Africa plc.

The capital injection values Airtel Africa’s mobile money business at 2.65 billion dollars on a cash and debt-free basis.

QIA will hold a minority stake in AMC BV upon completion of the transaction (alongside other minority investors), with Airtel Africa continuing to hold the majority stake.

According to a statement released by the telecoms operator, the proceeds of the investment will be used to reduce debt and invest in network and sales infrastructure in operating countries.

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The deal will close in two tranches — 150 million dollars invested at the first close, and the remaining 50 million dollars will be invested at the second close.

During the signing of the agreement, Raghunath Mandava, CEO of Airtel Africa, welcome the venture noting that QIA joins both Mastercard and TPG’s The Rise Fund as an investor in their mobile money business.

“This partnership will help us realize the full potential from the substantial opportunity to bank the unbanked across Africa,” said Mr. Mandava.

“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,” commented Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA.

TPG The Rise Fund in March injected 200 million dollars in AMC BV and a month later, MasterCard invested 100 million dollars. The Group also sold its telecommunication towers companies in Madagascar and Malawi on 23 March 2021.

These transactions are a continuation of the Group’s pursuit of strategic asset monetization and investment opportunities as Airtel Africa aims to explore the potential listing of the mobile money business within four years.

The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

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AMC BV is an Airtel Africa subsidiary and the holding company for several of Airtel Africa’s mobile money operations across 14 African countries, including Kenya, Uganda, and Nigeria.

The mobile money arm operates one of the largest financial services on the continent. It provides users access to mobile wallets, support for international money transfers, loans, and virtual credit cards.