AXIAN Telecom is making strategic moves to enhance its footprint in the African telecommunications sector. The company has inked a deal to increase its ownership stake in telecom operator Free Senegal to 80%.
To support its operations in Tanzania and Madagascar, AXIAN Telecom has secured a substantial loan of US$158.3 million from JPMorgan Chase Bank NA, an American financial institution. This financial arrangement was formalized through a term credit agreement on July 19 and is outlined in AXIAN Telecom's Q2 2023 financial report.
The loan comprises two distinct facilities, with the primary goal of enabling AXIAN Telecom to settle its prior capital expenditures and allocate resources effectively for upcoming capital investments required to conclude ongoing network modernization projects in Tanzania and Madagascar.
The impetus behind this network modernization effort stems from the increasing demand for high-speed connectivity in both Tanzania and Madagascar. In a significant development, AXIAN Telecom had previously entered into a partnership with Ericsson for the upgrade of the telecom networks operated by Telma Madagascar and Tigo Tanzania in March. In addition to the expansion and enhancement of their 4G networks, these partners have launched 5G services in Tanzania.
These strategic initiatives are expected to bolster the positions of AXIAN Telecom's subsidiaries in their respective markets. In Madagascar, Telma is engaged in a competitive rivalry for dominance in the national telecoms market, with Orange being a major contender.
