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Allied Mobile Africa has signed a strategic finance and partnership agreement with the Public Investment Corporation (PIC) for debt funding facility of $55-million (approximately R800-million). The facility is to drive the company’s growth in South Africa as well as their expansion on the rest of the African continent.
From its inception in 2003 Allied Mobile has grown to be the dominant, cellular product distributor and 3rd-party logistics provider to the mobile telecommunications industry in Africa.
Allied Mobile services a fast-growing mobile communications market in sub-Saharan Africa, which is supported by strong demographic and economic fundamentals. From the provision of full supply chain and logistics services, to full turnkey white-label retail operations enablement, Allied’s market offering and geographical coverage continue to grow as the company leverages favourable market conditions together with its increasing experience, capabilities and relationships.
Leveraging its leadership position in South Africa and other existing markets, the company has been rapidly expanding its presence into a group of high-growth African countries, with sales volumes expecting to grow between 15% and 20% annually. These countries include Mozambique, Namibia, Zambia, Uganda, Rwanda, DRC, Angola, Zimbabwe, Lesotho, Swaziland, Botswana and Kenya.
“Since these countries are at different economic and technological stages in the development cycle, Allied has to approach these markets with a tailored product offering and a strategy to address specific local needs,” says the Allied Group’s CEO Jacqueline Cole-Courtney.
“Allied’s objective is to be present in every country in Africa and the recent funding from the PIC will assist us in achieving this. Our geographical expansion program is being conducted in a very cost-effective and efficient manner, as the core operations are run from Allied’s existing Sub-Saharan offices which include eight major hubs and four repair centres located throughout Sub-Saharan Africa, with certain central core functions located in a centralised offshore office, which eliminates the need to duplicate functions,” says Cole-Courtney.
“Communications remains an important element for the economic growth of any country. We are, therefore, happy to provide funding that seeks to unlock economic potential of countries in which Allied Mobile Africa operates. Our funding supports our objective of investing towards development here in South Africa and the rest of the African continent,” says Dr Daniel Matjila, CEO of the PIC.