London- and Johannesburg-listed Dimension Data has added to its African presence by purchasing a 51% stake in Moroccan-based Telcom for an undisclosed amount.
Dimension Data Middle East and Africa (MEA) chairman Andile Ngcaba says the deal “enhances our plans to be represented in the four corners of emerging Africa”.
The purchase is effective from the beginning of next month, and is part of the company's strategy to establish a strong presence in emerging West, East, South, and North Africa.
Telcom, officially known as T'el'edistribution et Communication, operates in the telecommunications infrastructure service space. It will be rebranded as Dimension Data Maroc, and plans are already under way to grow the business in the IT space.
Dimension Data wants to increase its new subsidiary's core business, as well as the network integration, Microsoft Solutions, and advanced infrastructure business units. The company will focus on the service provider market, says Ngcaba.
“In time, we will introduce our data centre and storage offerings to the region,” explains Ngcaba. He adds that both Cisco and Microsoft have committed their support to growing market share with Dimension Data in the region.
“Our entry into the Kingdom of Morocco brings the number of employees in the Dimension Data emerging Africa territory to around 600 and the Dimension Data Middle East and Africa group, incorporating SA, to over 5 000 employees,” says Ngcaba.
Growth potential
He explains that Morocco has a relatively well developed ICT sector, as it has high mobile and Internet penetration rates. The country has 21 million cellphone subscribers, which is a penetration rate of 58%, and 7.3 million Internet subscribers, or 21% penetration.
Ngcaba adds that the country's proximity to large European Union markets, and the fact that Morocco's economy is services-driven, means ICT is an area of growth.
Reda Meziane Belfkih, Telcom MD, will head up Dimension Data Maroc. “Management and our 130-strong team of employees are delighted to be part of a global organisation,” he notes.
“We have built up a solid reputation in the market since it was founded over nine years ago in 2000, and look forward to taking the business to a new level together with Dimension Data.”
Initially, Dimension Data Maroc will operate out of offices in T'emara and Casablanca.
Dimension Data's Algerian business, which has been operating under the auspices of the Group's European operation for the past five years, will be relocated to the Middle East and Africa business, as part of the North African plan.
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