Africa’s testing ground To make it big in Africa, a business must succeed in Nigeria, the continent’s largest market. No one said it would be easy IN 2001 MTN, a fledgling telecoms company from South Africa, paid $285m for one of four mobile licenses sold at auction by the government of Nigeria. Observers thought its board was bonkers. Nigeria had spent most of the previous four decades under military rule. The country was rich in oil reserves but otherwise desperately poor. Its infrastructure was crumbling. The state phone company had taken a century to amass a few hundred thousand customers from a population of 120m. The business climate was scarcely stable. MTN took a punt anyway. The firm’s boss called up colleagues from his old days in pay-television and found they had 10m Nigerian customers. He reasoned that if they could afford pay-TV they could stump up for a mobile phone. Within five years MTN had 32m customers. The company now operates across Africa and the Middle East. But Nigeria was its making and remains its biggest single source of profits. Read more at ngrguardiannews/features/focus/176583-africa-s-testing-ground
Posted on: Wed, 27 Aug 2014 15:59:52 +0000
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