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e& Group has committed to investing US$6 billion over the next two years to drive technology and infrastructure development and drive digital solutions in Africa, Asia and the Middle East.
The UAE telecoms giant said the investment is aimed at providing accessible and affordable internet connectivity and digital services in the 16 markets it serves across three continents.
“e&’s commitment is to provide meaningful connectivity to emerging markets including the United Arab Emirates, Saudi Arabia, Pakistan, Egypt, Afghanistan, Benin, Burkina Faso, Central African Republic, Côte d’Ivoire, Gabon, Mali, Mauritius and Litania, Morocco, Chad, Togo and Niger,” the Abu Dhabi-listed company said in a statement.
The investment aims to improve internet accessibility and affordability in emerging economies by expanding network coverage, enhancing connectivity and ensuring access to cheaper telecommunications services.
Hatem Dowidar, CEO of e& Group, said: “Through these investments, we can better serve our customers and allow them to participate in more economic activities.”
e& has committed $6 billion to invest in digital infrastructure and services. Our goal is to drive economic growth, innovation and infrastructure development, significantly reduce inequality, and enable communities to thrive in a more inclusive and connected digital world. “
e& said the commitment will also promote widespread adoption of digital services, including mobile financial solutions, telemedicine and education in underserved areas.
The group said it will also reinvest in future network construction to accelerate technology adoption, increase fiber penetration and fast mobile network speeds.
e& has committed $6 billion to the International Telecommunication Union’s Partner2Connect digital alliance to further its contribution to the Sustainable Development Goals (SDGs), including quality education, gender equality, and industry, innovation and infrastructure development.
e&Group’s growth strategy
With a market capitalization of $42.9 billion (Dh157.4 billion) as of March 4, 2024, e& is one of the largest overseas investors in Abu Dhabi, along with the emirate’s various sovereign funds. The telecoms giant’s expansion plans are in line with Abu Dhabi’s ambitions to grow state-owned entities through acquisitions and create companies with large-scale international reach.
Since its initial investment in May 2022, e& has increased its stake in Vodafone UK, with the two companies agreeing to deepen their partnership in May 2023.
Its group chief executive Dowidar joined Vodafone’s board in May last year and will remain on the board as long as the company maintains its current 14.6% stake in the British telecoms company.
In August last year, e& also agreed to acquire a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia for US$2.4 billion to implement the group’s plan to enhance its global influence through diversification into new regions.
The deal includes milestone payments of up to €350 million if the PPF exceeds certain targets, and a clawback clause of up to €75 million if certain targets are not exceeded. It also marks the Abu Dhabi company’s second major foray into Europe since its investment in Vodafone.
Read: Emirates e& ends talks to increase stake in Saudi Arabia’s Mobily
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