Allied Mobile Africa has signed a strategic finance and partnership agreement with the Public Investment Corporation (PIC) for a debt funding facility worth R800 million ($55 million).
The aim is for the cash injection to drive the company's growth in South Africa as well as expansion on the rest of the continent.
"Allied's objective is to be present in every country in Africa and the recent funding from the PIC will assist us in achieving this," according to Allied Group CEO Jacqueline Cole-Courtney.
Allied Mobile was founded in 2003 and services a fast-growing mobile communications market in Sub-Saharan Africa as a cellular product distributor and third-party logistics provider. The company says the PIC funding will help it capitalise on associated future opportunities.
The company has been rapidly expanding its presence into a group of high-growth African countries, with sales volumes expecting to grow between 15% and 20% annually. These countries include Mozambique, Namibia, Zambia, Uganda, Rwanda, DRC, Angola, Zimbabwe, Lesotho, Swaziland, Botswana and Kenya.
"Since these countries are at different economic and technological stages in the development cycle, Allied has to approach these markets with a tailored product offering and a strategy to address specific local needs," says Cole-Courtney.
PIC CEO Daniel Matjila believes communications remains an important element for the economic growth of any country.
"We are happy to provide funding that seeks to unlock economic potential of countries in which Allied Mobile Africa operates. Our funding supports our objective of investing towards development here in South Africa and the rest of the African continent," he says.
"Our geographical expansion programme is being conducted in a very cost-effective and efficient manner, as the core operations are run from Allied's existing Sub-Saharan offices, which include eight major hubs and four repair centres located throughout Sub-Saharan Africa, with certain central core functions located in a centralised offshore office, which eliminates the need to duplicate functions," says Cole-Courtney.
Allied has operations across the Sub-Saharan telecommunications market, in 26 African countries with a total population of over 700 million.
"The last five years have seen Africa experience the fastest growth in telecoms worldwide. Telecoms are transforming lives in Africa and with the PIC investment, we are poised to be able to achieve our business goals as well as accelerate the transformation by supplying affordable smart devices combined with Internet access." says Eamonn Courtney, chairman of Allied Group.
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