Essar To Exit African Telecoms Market?

India-based conglomerate Essar Group may be looking to exit the African telecoms market, according to reports in local newspaper The Economic Times, citing sources familiar with the company's plans. Essay operates under the YU brand in Kenya and has interests in UAE-based Warid Group's telecoms assets in Uganda and the Republic of Congo. BMI is not surprised by the report, though they have not been confirmed by Essar at the time of writing, as it chimes with our view that the ongoing price war in many markets in Africa will lead to consolidation in the telecoms sector as operators with fewer resources to sustain low margins for lengthy periods will likely be squeezed out of the market.

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