Overview:
Axian Telecom's Yas network completed a $63 million acquisition of Wananchi Group, owner of Zuku and SimbaNet, gaining access to 1 million homes in East Africa and pledging major investment in high-speed connectivity.
Axian Telecom Fibre Ltd., operating as Yas, has finalized its acquisition of Wananchi Group, the parent company of Zuku, for $63 million. The purchase of the East African connectivity provider marks a major step in Axian’s regional expansion strategy, giving the company access to more than 1 million connected homes across Kenya, Tanzania, Uganda and Malawi.
Axian Telecom is a subsidiary of the Mauritius-based Axian Telecom Holding and Management PLC. Wananchi is known as one of East Africa’s leading fixed broadband and enterprise connectivity providers. Although officials declined to disclose the specific value of the transaction, sources familiar with the deal said the 99 percent acquisition was valued at 240 billion shillings.
Axian has committed to heavy investment through SimbaNet, Wananchi’s business internet division, to expand “reliable, high-speed, and inclusive connectivity” across its newly acquired markets.
Genue Mwaura, chief executive officer of Zuku, confirmed the company needed new capital to remain competitive in a rapidly evolving sector. Mwaura said that while the market was less crowded when they started in 2017, today it is far more dynamic. This partnership provides Zuku with the financial capacity and opportunity to scale its operations.
Hassan Jaber, chief executive officer of Axian Telecom, said Wananchi’s strong customer relationships, regional networks and local expertise provide a strategic gateway for Axian’s growth beyond its existing operations in Tanzania and Malawi.
Axian, which already operates across eight other countries including Madagascar, Togo and the Democratic Republic of Congo, provides mobile and fixed connectivity, digital infrastructure and financial technology services. In Uganda, however, the company plans to focus primarily on household broadband connectivity and television services while also improving the digital capacity of enterprises and government institutions.
Wananchi’s integration into Axian’s Yas network is expected to leverage Axian’s large scale, investment capability and operational expertise. Mwaura added that the transition would ensure business continuity for both employees and customers and could generate new jobs throughout the region through expansion.
The acquisition comes as East Africa continues to be one of Africa’s fastest-growing broadband markets. Uganda’s internet service sector is increasingly competitive, with players such as MTN, Airtel and Roke Telkom vying for market share.