Johannesburg - Africa’s leading network operator MTN has put aside its troubles in Nigeria for the time being and is focusing on building its battered brand by teaming up with London-based venture capital company, Amadeus, and with Africa’s leading online travel agency, Travelstart.
The global technology investor Amadeus is investing $40 million (R641m).
Read: MTN keeps taking a beating
“Our African presence has enabled us to team (up) with these two great companies for the benefit of all involved. We are going to use our mobile distribution network and assist with our roaming facilities in making Travelstart more competitive,” Herman Singh, MTN’s group digital officer, said.
Travelstart has a market share of more than 75 percent of the online travel industry in South Africa and has footprints in Nigeria, Egypt, Kenya and the Middle East. The financial injection will allow Travelstart to enter new markets.
MTN believes it has made the right decision in teaming up with the online travel agency. “We are excited about our involvement and we are looking forward to exploring other e-commerce ventures that might arise from this involvement with Travelstart,” Singh said.
“There is synergy between the companies and we expect our involvement will be beneficial for both companies.”
Travelstart achieved revenue of more than $200m in 2015. MTN is Africa’s biggest cellular operator with more than 230 million subscribers, with Nigeria accounting for 60 million.
Andrea Traversone, a partner at Amadeus, was quoted in a statement as saying: “We (Amadeus) are a technology investor, so investing in companies like Travelstart is our core business and focus. So our goal is to support the company’s development and drive good returns for our fund’s investors.”
Growth
“The relationship with MTN and Travelstart could propel the company’s (Travelstart) growth in Africa and the Middle East, particularly in those markets where MTN has operations. “Amadeus has demonstrated its commitment to strong investment opportunities, such as Travelstart, that respond to these trends in emerging markets.
“Africa has one of the fastest-growing middle classes in the world that is fast adopting e-commerce and mobile internet access.”
MTN can do with good news as it struggles to shake off the outstanding fine of $3.9bn imposed by Nigeria.
Shares were up 1.36 percent yesterday to close at R127.37.
BUSINESS REPORT