Zain adds Morocco's Wana to growing share of mobile market

Pan-African mobile service provider Zain, through a partnership with Al Ajail Investment Fund, has acquired a 31 percent stake in the Moroccan operator Wana, the third mobile telecom operator in Morocco, in order to consolidate its share of the African mobile market.

Zain is moving to make several acquisitions in Africa this year in order to capture several markets before the African mobile market becomes saturated.

European, Middle Eastern and Asian mobile service providers are competing for the remaining share of the lucrative African mobile market, forcing companies to make acquisitions of financially ailing service providers rather than get new operational licenses.

The 31 percent stake in the Moroccan operator means that Zain and its co-investor, Al Ajail Investment Fund Holding of Morocco, will pay US$324 million in return in order to establish a venture dubbed Zain Al Ajail. The investment also means that Zain will provide Wana with the funding requirements and operational contributions for Wana to continue on its ambitious growth plan and eventually launch its GSM (global system for mobile communications) service by the end of this year.

Zain CEO Saad Al Barrak said that Morocco is an exciting new region for Zain, helping extend its footprint to 23 countries in Africa and the Middle East.

Wana is an integrated telecom operator offering fixed and restricted mobility wireless services, code division multiple access (CDMA) mobility services, and Internet and data services throughout Morocco. Wana has fixed, 2G and 3G telecom licenses.

"We are looking forward to assisting Wana to capitalize on its record of introducing innovative products to Morocco and to share substantial growth opportunities that lie ahead as Wana launches its new GSM offering," Barrak said.

Along with the investment, Wana and Zain will enter into an operating framework agreement that will let Wana access Zain's expertise, purchasing power, products and services, including Zain's One Network service.

One Network is a borderless mobile telecom network service launched in 2006 offering communication service across borders without roaming-call surcharges, and it does not require customers to pay for incoming calls.

The One Network service is currently operational in many countries in Africa and the Middle East including Kenya, Malawi, Nigeria, Saudi Arabia and Sudan.