Zuku parent company Wananchi Group is set to be acquired in a deal backed by the International Finance Corporation (IFC). The buyer, Axian Telecom, has secured Ksh9.6 billion ($62.5 million) in funding to close the transaction.
IFC disclosed that it will anchor a Ksh3.9 billion ($25 million) investment and mobilize an additional Ksh5.7 billion ($37.5 million) from other lenders to support Axian Telecom’s acquisition of Wananchi, a leading East African provider of pay TV, broadband, and internet services.
The deal marks one of the region’s telecom acquisitions, signaling Axian’s continued expansion into East Africa’s digital and connectivity space.
Axian Telecom, based in Mauritius, has operations across Africa, including in Tanzania, Madagascar, Togo, and Senegal.
Acquisition of Wananchi Group
Wananchi Group, best known for its flagship brand Zuku, has a strong presence in Kenya and Uganda, offering home internet, pay television, and business-to-business fiber services.
In Kenya, Zuku’s fixed internet service had an estimated market share of 16.9% as of June 2023, according to the Communications Authority of Kenya (CAK).
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The acquisition will include Wananchi’s subsidiaries in Kenya, Uganda, Rwanda, and Malawi, according to a notice issued by the COMESA Competition Commission on September 12, 2024.
Wananchi’s operations in the Democratic Republic of Congo and other countries in the COMESA bloc are also part of the deal.
Axian Telecom plans to consolidate Wananchi’s regional footprint, improve service quality, and expand broadband infrastructure.
The acquisition is expected to deliver efficiencies and strengthen Axian’s strategy of becoming a major telecom and digital infrastructure player across the continent.
The acquisition is also expected to unlock further capital from private equity investors looking to exit the Wananchi Group after more than a decade of investment.
The COMESA Competition Commission had opened an inquiry into the deal and has invited comments from stakeholders by October 3, 2024.
Growth of Axian
Axian Telecom is a pan‑African telecommunications and digital infrastructure company headquartered in Mauritius.
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Axian is ranked the sixth-largest African mobile operator, has 41 million mobile subscribers across, and has issued multiple bonds in the past five years backed by IFC, British International Investment, DEG, and Proparco.
It was founded in 2003 and operates across various markets in Africa, including Tanzania, Madagascar, Togo, Uganda, Senegal, the Comoros, Réunion, Mayotte, and the Democratic Republic of Congo.
The company provides a broad suite of services like mobile and fixed broadband networks, ICT infrastructure, and mobile financial services.
Axianraised $100 million from the European Investment Bank to expand mobile broadband infrastructure (4G/5G) in Madagascar and Tanzania and also issued a $600 million bond in 2025 to strengthen its balance sheet and invest further in connectivity across its markets.
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