Mastercard had invested $100 million three months ago in Airtel Mobile Commerce (AMCBV) which is the mobile money division of telecom Airtel Africa. It received $200 million from TPGs Rise Fund, two weeks earlier.The African telecoms operator announced today that it had secured another investment in its mobile money arm. Who was the investor? The investor? Qatar Holding LLC is an affiliate of Qatar Investment Authority (QIA), a sovereign wealth fund of Qatar worth over $300 billion. Through a secondary acquisition of shares from Airtel Africa, the Middle Eastern corporation will invest $200 million in AMC BV.AMC BV, an Airtel Africa subsidiary, is the holding company for many of Airtel Africa's mobile money operations in 14 African countries including Nigeria, Uganda, Kenya, and Uganda. One of the most important financial services in Africa is provided by the mobile money arm. It allows users to access mobile wallets, international money transfers, loans, and virtual credit cards.The telecoms operator released a statement stating that the funds will be used to reduce debt as well as to invest in the network and sales infrastructure of the respective operating countries. The deal will be closed in two tranches of $150 million, with the largest being in August. The $50 million remaining will be invested at the second close.Airtel Africa claims QIA would retain a minority stake, while it will continue to own the majority. Airtel Africa still has a value of $2.65 billion, on a cash-and-debt-free basis. This time, QIA has the right to appoint a director on AMC BVs board as well as certain customary information rights and minority protection rights.Airtel Africa's Q1 2021 report shows signs of growth. Airtel Africa saw a 53.7% increase in revenue year-over-year, driven by a 24.6% increase in its customer base to 23.1million. The transaction value increased 64.4% to $14.7Billion ($59 billion annuallyised); EBITDA was $60M ($240 million annuallyised), with a margin 48.8%. The company also earned $124 million ($496 millions annually), and its profits before taxes for the quarter ended in 2021 were $185 million.QIA CEO Mansoor bin Elbrahim Al-Mahmoud stated that the sovereigns wealth funds investment in Airtel Africa would promote financial inclusion in Sub-Saharan Africa. Airtel Money is a key player in economic activity. This includes customers who don't have access to traditional financial services. He said that we believe in the company's mission to continue these efforts over time.Airtel Africa made public its intention to sell a minority share in AMC BV in February to raise funds and to dispose of some assets. It sold the telecommunication towers of Malawi and Madagascar to Helios Towers and raised $500 million from outside investors.
