Telkom has sold its pan-African business, iWayAfrica and Africa Online Mauritius, through a private sale to Gondwana International Networks.
“This transaction is one of many initiatives that will contribute to our own turnaround, allowing us to focus on our core South African fixed-line and mobile operations. We are also pursuing several other initiatives in a coordinated manner to restore Telkom’s financial health,” says Sipho Maseko, Telkom Group CEO.
iWayAfrica was formed as the result of the amalgamation of MWeb Africa and Africa Online in 2007 when MWeb Africa was purchased by Telkom.
Maseko says Telkom has struggled to drive growth and profitability in the iWayAfrica business since it was acquired.
“Several years of poor performance of the iWay Group has resulted in continued negative EBITDA contribution to our group.”
Maseko also says Telkom is of the view that Gondwana has the tangible experience of managing and owning ISP’s on the African continent and believes that this is beneficial in taking the business forward.
“We intend to invest heavily in the business in the future. We see the opportunities that this offers us as essential to form a platform for our growth in the lucrative, albeit difficult ISP markets in Africa, and we are confident that we will be in a position to expand this moving forward,” says Mathew Welthagen, Gondwana CEO.
“By applying sound business principles and focussing on skilled resources within the specific country territories, we are confident that we can positively turnaround the iWay business in the short term and provide significant growth thereafter.”
The iWayAfrica business operates in eight countries on the continent offering terrestrial wireless and VSAT services to business and residential markets as well as via its channel partners in many other countries on the continent.