Evan Tindell, CIO of Bireme Capital, shares his thesis on Airtel Africa Plc (LSE: AAF), a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.
Super interesting as a long time MTN group shareholder. The demographic benefit makes these businesses much different than DM telco companies or even LATAM telco companies. There are risks involved with the regulatory pressures and potential extra taxes, coups and conflicts. Some will inevitably materialise like the MTN fines in Nigeria a few years back. Ultimately, the fines are paid, and the business strength prevail, similar to fines hitting a Meta or Amazon. Capitalising on the payment business and the customer relationship is very important to get free from the just mobile business. Regarding the payment business, selling a portion of it for me at this early stage seems very short sighted. I wish that shareholders had a real long term view.
Super interesting as a long time MTN group shareholder. The demographic benefit makes these businesses much different than DM telco companies or even LATAM telco companies. There are risks involved with the regulatory pressures and potential extra taxes, coups and conflicts. Some will inevitably materialise like the MTN fines in Nigeria a few years back. Ultimately, the fines are paid, and the business strength prevail, similar to fines hitting a Meta or Amazon. Capitalising on the payment business and the customer relationship is very important to get free from the just mobile business. Regarding the payment business, selling a portion of it for me at this early stage seems very short sighted. I wish that shareholders had a real long term view.