Profile Technologies, a unit of Profile Investment Holdings, has acquired a 30 percent stake in MTN Business Namibia, a local arm of the MTN Group which operates in 24 countries.
The multi-million-dollar transaction, which is still subject to approval by the Namibian Competition Commission (NaCC), will result in MTN Business Namibia partnering Profile Technologies, a company with local expertise in the Namibian ICT sector.
“The partnership allows us to create efficiencies and converged solutions, while creating service offerings for both fixed and mobile telecommunications services, aimed at corporate and SME customers,” MTN Business Namibia Managing Director, Elia Tsouros, said.
As part of the deal, which will create one of the largest ICT companies in the country with significantly enhanced service offerings for enterprises and consumers, Profile Technologies will cease to operate as an independent entity, and will be merged into the operations of MTN Business Namibia.
Profile Investment Holdings will now take up two board seats in the merged company, with the remaining three seats taken up by representatives of the MTN Group. Over the coming months, MTN Namibia plans to make extensive upgrades and expansion of its services offering, delivering greater levels of high-speed connectivity and solutions to more customers across Namibia.
MTN Namibia will also focus on offering broader services beyond connectivity, including e-based software and security solutions, giving it a competitive advantage and access to a huge market potential spread across the vast Namibian landscape.
Profile Investment Holdings Managing Director, Solomon Nemaire, said the merger allows them access to a global network while giving them the opportunity to offer complete ICT solutions, including connectivity for existing and potential clients.
“Our business was geared towards offering solutions to e-government and quasi-government institutions; MTN Business Namibia has exposure to the private sector,” he added. “The merged business will rapidly propel Namibia towards achieving its ICT goals and increase the growth and employment creation potential of the sector.”
Information and Communication Technology Minister, Tjekero Tweya said in a speech read on his behalf by the ministry’s Permanent Secretary, Mbeuta Ua-Ndjarakana, that it is sad to note that the ICT industry has failed the country, because 27 years after independence, many Namibians have no access to ICT, television signals, internet or mobile services.
“I believe that the timing of the partnership that we are witnessing today would not have come at a better time. It is also my sincere hope that you will make good your promise to propel Namibia towards achieving its ICT goals and increase the growth of opportunities in the sector.”
He said it is the desire of the Government, as set out in the guiding principles of the ICT Policy, to see increased internet access, and competition as well as fair and transparent industry practices that aim to grow the ICT sector.
Tweya added that the Government was hopeful that the West Africa Cable System (WACS), coupled with favourable polices and frameworks would bring increased broadband capacity, boost the uptake of internet-based services and internet access in the country.
He further said that the Government network backbone infrastructure has been redesigned and is being upgraded to be able to carry the increased bandwidth capacity of 600 Megabits per second (Mbps) from WACS and enable seamless Government service delivery in all the regions.
“Such infrastructure will make it possible for the implementation of e-government and facilitate decentralisation of services,” Tweya said.