MTN Group has announced a partnership with Rocket Internet and Millicom International to develop e-commerce in Africa through a joint venture called Africa Internet Holding (AIH). The three companies will fast-track the development of AIH using MTN's and Millicom's complementary footprints in Africa and Rocket Internet's know-how in online services. MTN, Millicom and Rocket Internet will each become 33.3 percent shareholders in AIH and will have equal representation on the board of the company.
The deal will enable MTN to extend online retail and other digital services on the African continent. The investment is subject to regulatory approval, and the transaction is expected to close during the second quarter of 2014.
MTN Group CEO Sifiso Dabengwa said Rocket Internet's track record, coupled with Millicom's and MTN's leading mobile telecommunications positions, will allow the partnership to capture the growth potential of the digital media space across their footprints in the region. AIH is a leading internet group in Africa, with presence in thirteen countries on the continent, including South Africa, Nigeria, Egypt, Morocco, Cote d'Ivoire and Ghana.
