Orange Business Services, the business-to-business arm of French mobile giant Orange, aims to almost double revenue from Africa to EUR7 billion by 2015, as it seeks to entrench its position on the continent.
Addressing a media roundtable yesterday, Jean-Luc Lasnier, GM for Middle East and Africa (MEA) for Orange Business Services, said the company's revenue from the continent is expected to grow by at least 20% each year.
Currently, Africa - where it has a presence in 40 countries - accounts for about EUR4 billion of the unit's EUR7 billion in annual revenue. Lasnier says the group is targeting high-growth markets and is upgrading its assets in Africa, and aims to grow revenue to EUR10 billion by 2015.
Orange Business Services has 21 000 staff, in 166 countries, and more than 3 000 multinational clients. In MEA, Orange has 2 000 "feet on the ground".
Multinational focus
Orange entered Africa in 1949, but its Business Services unit has concentrated its sales focus in SA, where the bulk - 70% ? of multinationals targeting the continent have head offices, says Lasnier. Three years ago, it launched its Africa N1 (number one) programme, in a bid to reinforce its presence on the continent, he adds.
Orange Business Services is targeting industry verticals such as petroleum and chemicals, banks, mining, retail, and the medical sector, says Lasnier. Some 30% of the group's total spending goes into MEA into aspects such as capital expenditure, acquisitions and operating costs, he says.
Orange is one of the world's largest cellphone companies, with more than 230 million customers using its mobile, fixed-line and Internet offerings, and turnover of EUR43.5 billion.
Orange Business Services is present in 166 countries and offers a full range of integrated IT and communications services, says Lasnier. He adds that it provides voice and data networks across 220 countries.
Its strategy is to follow multinational clients as they expand into high-growth areas, such as Africa, which is seeing better growth than developed countries, such as those in Western Europe, says Lasnier.
Orange has more than 172 000 staff, and 450 000km of network, and is present with a mobile network in 33 countries globally, including some in Africa. Lasnier explains that Africa is important for the company's expansion.
Will Hahn, principal research analyst at Gartner, told ITWeb that Orange, "more than most of the big 10, is under significant pressure at home". He noted that it needs to look at emerging markets and other sources of revenue.
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