Checkers Rewards Programme Has Attracted Over 4.7 Million Customers

Checkers, Africa’s largest supermarket group in November 2019 introduced its new rewards programme, called Checkers Xtra Savings. The programme was to compete with Pick...

Latest Posts

MTN Takes Interim Measures To Preserve Liquidity of MTN Zakhele Futhi

The liquidity of MTN Zakhele Futhi has been impacted by MTN’s decision not to declare a dividend in its financial results for the six...

Spring Into Action This Spring – 6 Steps To Buying The Perfect Home

Spring is one of the best seasons to buy a home. The weather is warming and the positive shift in weather is prompting people...

Lawyer Belinda Mapongwana Appointed as Chairperson of MTN Zakhele Futhi

MTN Zakhele Futhi, the black economic empowerment scheme of MTN Group, has tapped lawyer Belinda Mapongwana as its chairperson. Mapongwana will replace Sindisiwe Mabaso-Koyana, who...

Avon Commemorates International Peace Day With a Premier Film on Domestic Violence

Global beauty and cosmetics company Avon will be joining the global community in commemorating International Peace Day on September 21, and the company will...

MTN dumps Afrihost after few months of marriage

Back in 2014, MTN – South Africa’s second biggest mobile phone operator – shelled out R408 million to buy 50% (plus one share) of the internet service provider Afrihost. Everyone literally swept this deal under the carpet. By Gugu Lourie

Now, MTN is planning to dispose of its 50.02% shareholding in Afrihost. The company says this is in line with its strategy of focusing on core business and pursuing opportunities in relevant adjacent businesses.

MTN claims that evolving market circumstances have resulted in it reviewing its ownership in Afrihost. As a result, MTN has agreed to dispose of its shareholding to the executive management of Afrihost.

But while circumstances have changed, it doesn’t position MTN well in its diversification strategy as Afrihost was meant to add scale to the mobile phone operator’s online ICT service offering that is focused on the consumer and small and medium enterprise market.

MTN was also expecting to leverage off Afrihost’s strong customer service, value proposition and agility, thereby boosting MTN South Africa’s presence in the SME, Corporate/Consumer and Connected Home segments.

However, MTN’s decision to walk away from Afrihost is likely to hurt its growth strategy into adjacent markets through acquisitions and its local business that has been hard hit by tough competition from rivals.

Mteto Nyati, CEO of MTN South Africa
Mteto Nyati, CEO of MTN South Africa

That said, Mteto Nyati, MTN SA CEO, on Friday justified the company’s exiting its majority stake in Afrihost saying “the disposal will allow both parties to focus their attention on their core businesses”.

Nyati added that the deal is in line with MTN’s strategy of focusing on core business while exploring relevant adjacent growth opportunities. “The conclusion of this transaction will go a long way towards streamlining our operations” he said.

Gian Visser, Afrihost’s CEO, said the ISP have enjoyed a long and fruitful partnership with MTN over the years.

“We are grateful for everything they have done for us. MTN will remain a key supplier of ours, and we look forward to continue working with them for the years ahead.”

In line with the spirit of the agreement, MTN said it expects this development to have minimal impact on its customers.

Techfinancials didn’t support this deal when it was initially announced, for more read: No to MTN, Afrihost deal.

Latest Posts

MTN Takes Interim Measures To Preserve Liquidity of MTN Zakhele Futhi

The liquidity of MTN Zakhele Futhi has been impacted by MTN’s decision not to declare a dividend in its financial results for the six...

Spring Into Action This Spring – 6 Steps To Buying The Perfect Home

Spring is one of the best seasons to buy a home. The weather is warming and the positive shift in weather is prompting people...

Lawyer Belinda Mapongwana Appointed as Chairperson of MTN Zakhele Futhi

MTN Zakhele Futhi, the black economic empowerment scheme of MTN Group, has tapped lawyer Belinda Mapongwana as its chairperson. Mapongwana will replace Sindisiwe Mabaso-Koyana, who...

Avon Commemorates International Peace Day With a Premier Film on Domestic Violence

Global beauty and cosmetics company Avon will be joining the global community in commemorating International Peace Day on September 21, and the company will...

Don't Miss

Telkom Taps Ex-MTN Executive and Openserve Boss as Board Members

Telkom has announced the appointment of new board members after the retirement of independent non-executive directors Santie Botha and Khanyisile Kweyama. Botha and Kweyama will...

Vodacom Zero-Rates New COVID Alert SA App

This past week, the national Department of Health (DoH) launched a COVID Alert SA App – in partnership with Discovery - to strengthen the...

Judi Bola Online: A Complete Guide on Sports Betting

Games or sports have always been a relaxing and entertaining activity for all of us. There are different kinds of outdoor and indoor games...

Vodacom Joins SADC’s TCIB Instant Payments Scheme

Vodacom Group and the SADC Banking Association have signed a memorandum of understanding that will allow the Vodacom Group to join the South African...

New York-Based DCG Buys Naspers-Backed Luno

Luno, one of the largest crypto exchanges in Africa, has been bought by New York-based Digital Currency Group (DCG). Luno is backed by Naspers and...

Stay in touch

To be updated with all the latest news, offers and special announcements.