Dimension Data takeover favours foreigners

The company, which has invested over $2 million in the region and is seeking to double its earnings in the next year, counts some of Kenya’s largest blue-chip enterprises as its customers.

“The opportunities in the region are an attractive for companies like ours. We have the additional benefit of sharing similar business models to Kenya and other regional markets,” said Vinod Bang, Mahindra’s Business Development Manager in the region.

On the other hand, South African firms, facing saturation in their home market, are seeking new pastures for expansion.

The most recent deal involved Telkom South Africa, whose home purchase of MWEB saw it take over the operations of Afsat, a local satellite data transmission firm for Sh5 billion.

The move hands Telkom SA the arsenal it needs to jump-start its regional plans after its 2007 purchase of internet firm Africa Online, and plans are under way to launch a merged Afsat/ Africa Online operation that will likely trade on the company’s leadership in the satellite arena.

Afsat is expected to set up additional hub infrastructure to cover the region of the Sub-Saharan Africa between 2011 and 2015.

Already, the company has built five satellite hubs in Africa.

Expand network

Telkom SA will vie for a share of the internet market alongside Allied Technologies, who earlier this year completed its buyout of Kenya Data Networks and Swift Global — another two formerly Kenyan-owned enterprises.

Altech is putting $39.5 million into the company since the buyout will be used to expand the KDN network to position the company as a key provider of broadband in East Africa.

KDN is a leading data network infrastructure operator in Kenya, with a nationwide fibre optic network.

“East Africa will remain our main focus, we are currently bedding down the investment before we roll out the Altech business model elsewhere in Africa,” said Altech CEO, Craig Venter.