In 2019, Seacom, with support from the United States Trade and Development Agency (USTDA), carried out an analysis of the market potential for fiber optic services in Tanzania, Uganda, Kenya, and Rwanda.
The CEO of Seacom, Alpheus Mangale, disclosed in a recent interview with Business Day that the company intends to start growing its operations in West and East Africa. Seacom provides digital infrastructure and IT services.
With this project, the business hopes to expand throughout Sub-Saharan Africa in the face of a rapidly changing digital landscape and a rising need for digital services and high-speed connectivity. The company estimates that in order to carry out this plan, it will require about $563 million, but as of June 2023, it has already obtained a $207 million loan from the International Finance Corporation (IFC).
Seacom’s expansion strategy was built around acquisitions. The business bought Hirani Telecom, a fiber optic provider in Kenya, in October 2021. Additionally, in February 2022, it acquired 760 kilometers of fiber optic cable and a data center from Ugandan telecom provider Africell. In order to purchase Network Solutions and Hymax subsidiaries, Seacom invested 144.9 million South African Rand (about $7.7 million) in April 2022.
By 2027, Seacom’s expansion into Sub-Saharan Africa is anticipated to assist 24,000 firms in the region with their digital transformation, according to the IFC. Additionally, this program will contribute to expanding access to cybersecurity, cloud, and internet services. In addition, the business hopes to increase profits by taking advantage of the anticipated increase in demand for a variety of services, including high-speed connectivity. According to forecasts from the Global System for Mobile Communications Association (GSMA), there will be 438 million mobile internet users in the region by 2030, up from 287 million in 2022.
