Airtel Africa is unlocking massive value from its one oasis – the telecommunication service for voice and data. Today, we are learning that “MasterCard is investing $100 million in Airtel Mobile Commerce … The transaction values Airtel Africa’s mobile money business at $2.65bn on a cash and debt free basis”. What does that mean? It means that Airtel Mobile Commerce in Africa is one of the biggest “fintech” companies in the continent.
MasterCard is investing $100 million in Airtel Mobile Commerce, not long after the telco received $200 million from The Rise Fund, the global impact investing platform of leading alternative investment firm TPG.
The transaction values Airtel Africa’s mobile money business at $2.65bn on a cash and debt free basis.
The proceeds from the transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.
MasterCard will hold a minority stake in Airtel Mobile Commerce, in line with Airtel Africa’s plan to monetize the mobile money business by selling up to a 25% stake in the unit.
Great companies build to deepen their one oasis and then use double play strategies to capture value. Today, Airtel is capturing value from its mobile money business. What is your one oasis? And how do you plan to capture value?
Indeed, oasis is very critical and every company has oasis. Your best product is the oasis in your business. Every other product feeds on that best product. If you build your investment around that main product, you will find success, because those investments will have a clear “customer”, and that reduces market risks. In other words, if your new business investments are geared to support the best product, and the best product is doing well, it means the risks on the new investments will be easily managed. Provided the best product continues to do well, demand on the new investment is assured. That is the One Oasis Strategy.
Read this my Harvard Business Review article if you want to understand how you can unlock value from your assets through the One Oasis – Double Play Strategy which I have postulated in markets.
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