AXIAN Telecom, one of Madagascar’s biggest telcos, has acquired Wananchi Group, the operator of Kenya’s Zuku internet and Tanzania’s Simbanet, to deepen its push into East Africa’s fast-growing broadband market.
The $63 million deal, completed through AXIAN’s fibre subsidiary Yas Telecom, gives the company a 99.63% stake in Wananchi Group (Holdings) Ltd. It marks AXIAN’s biggest step into Kenya, Tanzania, and Uganda, the region’s most competitive and promising internet markets.
The takeover places one of East Africa’s oldest internet service providers within AXIAN’s expanding portfolio, which already spans 11 markets, including Tanzania, Madagascar, Senegal, and Togo. For AXIAN, which has been on a buying spree over the past decade, Wananchi offers a ready-made network and a recognisable brand in Zuku, which pioneered home fibre in Nairobi’s middle-class suburbs.
“Wananchi Group’s network, customer relationships, and local expertise align perfectly with our ambition to be a leader in broadband connectivity across Africa,” said Hassan Jaber, AXIAN Telecom’s chief executive. “Together, we can deliver better access and new digital services for the communities and businesses we serve.”
Major shake-up
The acquisition could shake up the broadband industry in East Africa, where growth is picking up but competition remains fierce. In Kenya, Safaricom and Jamii Telecom dominate the fixed internet market, while Liquid Intelligent Technologies and Mawingu focus on business and rural connections.
AXIAN said it will maintain Wananchi’s staff and operations during the transition. The focus, the company added, will be on improving network reliability and expanding coverage in areas where broadband access is still limited.
AXIAN, which serves more than 41 million customers across 11 African markets, is rebranding its telecom and fintech operations under the Yas name as it seeks to establish a more unified presence across the continent.
The company, Africa’s sixth-largest mobile operator, has doubled its fixed broadband base in the past year and reported double-digit growth in revenue and EBITDA, according to Bertrand Lacroix, CEO of AXIAN Fibre.
“The integration of Wananchi will leverage Yas’s operational scale, investment capacity, and cross-market expertise,” Lacroix said. “Continuity of employment and business operations will be maintained, ensuring a smooth transition for employees, customers, and partners as Wananchi begins its new chapter within the Yas family.”
The sale of Wananchi is part of a shift in Africa’s telecom market, where larger regional players are acquiring smaller ones to grow faster and reduce costs. For AXIAN, it’s a sign that the company wants a share of the continent’s growing internet market.
