Discover
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How is Mukesh Ambani planning to expand his business in Africa?
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Why is Mukesh Ambani foraying into the African economy?
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Which company is the main competitor for Reliance Jio in the African continent?
Mukesh Ambani is back in the spotlight yet again, and this time, he’s turning his attention towards Africa. Known for his bold business moves, Asia’s richest man is gearing up to make waves in the telecom sector on the African continent.
Radisys Corp., a unit of Ambani-controlled Reliance Industries Ltd will provide key network infrastructure, applications, and smartphones for Ghana-based Next-Gen InfraCo. (NGIC), said Harkirit Singh, NGIC’s Executive Director, ahead of the company’s formal launch on Monday, May 27th, in Mumbai.
NGIC is planning to begin operations by the end of this year. The company will provide 5G broadband services to mobile operators and internet service providers in Ghana.
According to Harkirit Singh, the Executive Director of NGIC said that NGIC’s strategic partners, its technological prowess and the company’s possession of Ghana’s only 5G license will help it build broadband services at scale which is a huge expense for individual mobile carriers. Moreover, two African telecoms firms-Ascend Digital Solutions Ltd and K-Net will hold a combined stake of 55 per cent in the new company, while the Ghana government will own just under 10% of NGIC.
Additionally, “the company is based on the premise of building affordable digital services in emerging markets,” Harkirit Singh told Bloomberg News.
Why is Mukesh Ambani foraying into the African economy?
According to reports, increased private consumption and declining inflation are supporting an economic rebound in Africa. Ghana, a West African country with a population of just over 33 million, has three main operators: MTN Ghana, Vodafone Ghana and state-run AirtelTigo.
Under the proposed business model, NGIC will invest about $200 million in three years to scale up its 4G and 5G networks. Moreover, these will be offered to mobile operators in Africa as a shared infrastructure resource, optimising costs for local telcos that don’t want to invest in expensive network rollouts.
What does NGIC aim to achieve with this collaboration?
NGIC aims to replicate the success of Reliance Jio Infocomm Ltd. in India. Launched in 2016, Jio became synonymous with low-cost data and free-voice calling. Additionally, Ghana’s Minister for Communication and Digitalisation, Ursula Owusu-Ekuful, expressed her optimism about this venture, stating that NGIC will bring affordable mobile broadband services and devices to Ghana. It will thereby mirror India’s mobile data revolution.
Consequently, the Reliance-NGIC collaboration is also seen as a diplomatic victory for India, as it seeks to counter China’s growing influence in Africa through initiatives like digital inclusion. Also, none of the NGIC’s strategic partners, including Reliance hold equity in the company. However, there might be an option to accept part of their payments as equity in the future.
NGIC has also secured exclusive rights to offer 5G services in Ghana for the next decade, with its license extending up to 15 years. Moreover, the company’s capital expenditure for the first three years is projected at $145 million. It is also interesting to note that Reliance will be competing directly with Bharati Airtel which runs broadband in 14 African countries.
Also Read: UPI Going Global: Uniting Payments Worldwide
The Bottom Line
Mukesh Ambani is spearheading an ambitious venture to introduce affordable 5G broadband services in Ghana through NGIC. With strategic partnerships and Ghana’s only 5G license, this initiative aims to optimise costs for local telcos and drive digital inclusion in emerging markets, mirroring the success of Reliance Jio in India.
Frequently Asked Questions
What are the main businesses of Mukesh Ambani?
Mukesh Ambani is the Chairman and Managing Director of the Indian conglomerate Reliance Industries Limited (RIL). It is a multinational conglomerate with businesses across sectors such as petrochemicals, energy, textiles, retail, and telecommunications.
Which is the most profitable company of Mukesh Ambani?
Reliance Industries is the most valuable company in India that has solidified its position as a powerhouse in several sectors.
Who is the CEO of Jio World Centre?
Devendra Bharma is the CEO of Jio World Centre.
Did Mukesh Ambani go to IIT?
Yes, Mukesh Ambani went to IIT Bombay.
Who is the CEO of Reliance Digital?
Brian Bade is the CEO of Reliance Digital.
Who is the second richest person in India?
Gautam Adani is the second richest person in India.
