Menu

Africa's telecoms sector will undergo more mergers and acquisitions (M&A) activity as its markets continue to consolidate as they mature, according to Moody’s Investors Service (MIS).

African nations with four or more operators, or with telecoms companies that have a market share of less than 15%, are likely to see more consolidation, says MIS in a report released last month.

“Weaker third and fourth-tier operators will seek partners to benefit from scale or an outright exit, while operators based outside the region will seek to rationalise their portfolios in response to their own strategic initiatives,” the report said. “We expect more in-market consolidation, especially in markets where there are four or more operators and/or where operators have a low market share.”

The average number of operators in each African country is three, with some countries, such as Uganda, Cote d'Ivoire and Tanzania, having six operators, the MIS report said.