Millicom Acquires 88 per Cent Stake in Rwanda’s Rswitch

Mergers, Acquisitions and Financial Results

Tigo-RwandaMillicom, which runs Tigo Rwanda has said it has bought an 88 per cent stake, RSwitch, a national payment switch. The controlling stake was bought from Frankfurt-based African Development Corporation.

RSwitch powers Rwanda’s bank-to-bank payment switching services and was launched in 2002 as Simtel. African Development Corporation bought the controlling stake in 2010 and restructured and rebranded it. People close to the deal estimated it to be close to $6.5 million for the firm that owns one of the two switching licenses in the country and also operating globally as an electronic payment service provider.

In a statement, GM Tigo Rwanda Tongai Maramba said:”This acquisition will enable Tigo and Millicom become an even more dynamic financial provider. As we move into an era where more and more money will be exchanged through mobile devices, we will be a catalyst for the coming innovation in the financial services sector.”

Tigo Rwanda will therefore run the national switch of electronic payment transaction processing in Rwanda by providing services such as transmission of ATM transactions between banks in Rwanda, issuance of debit cards, reselling and leasing ATMs and provision of related services. The firm will also be able to process transactions on Point of Sale (POS) terminals and even open up its business to Rwandan banks and merchants (for POSs).