Indian billionaire Mukesh Ambani’s telecom company Jio is looking at expanding into Africa. The move could put it in direct competition with the continent’s biggest mobile networks. Jio already has about 500 million subscribers in India and is planning a $4 billion stock market listing.
Jio launched in India in September 2016 under Reliance Industries, the company Ambani controls. When it started, Jio offered free voice calls and very cheap data. This forced other operators to lower their prices or shut down. Within a few years, the telecom market in India had changed completely. Companies like Airtel and BSNL lost millions of customers as Jio grew quickly. The result was that ordinary Indians got much cheaper internet access than before.
Ambani is chairman of Reliance Industries, one of the biggest companies in Asia. He is one of the richest people in the world. Jio Platforms is now preparing to list on the stock market and aims to raise around $4 billion from investors. A successful listing would give Jio significant funds to expand into new markets. Africa has been named as a likely target region.
- Jio launched: September 2016
- Subscribers in India: approximately 500 million
- Planned IPO fundraise: approximately $4 billion
- Parent company: Reliance Industries, with annual revenues over $100 billion
Africa is home to more than 1.4 billion people. Mobile internet is growing fast across the continent. But data costs in many countries are still too high for average households. In South Africa, mobile data costs have been a national debate for years. Government has pushed operators to bring prices down. A company like Jio could appeal to millions of users who find the internet too expensive.
Business analysts say any Jio expansion into Africa would likely focus on infrastructure first. Fibre networks and mobile towers are still in short supply in many parts of the continent. Jio has experience building large networks quickly. In India, the company rolled out 4G to hundreds of millions of people in under two years. That speed would be hard to match on a continent where licence approvals can take years.
South Africa’s mobile market is led by MTN, Vodacom, Telkom Mobile, and Cell C. MTN and Vodacom together hold most of the market. If a well-funded player like Jio enters Africa, it could push these operators to reduce data prices. South Africa’s communications regulator ICASA has been pushing for lower data costs for years. More competition could help bring prices down. Any new operator would need to apply for a spectrum licence before offering services in South Africa.
Jio has not confirmed when or how it will move into Africa. The company is expected to complete its IPO on Indian markets first. A listing of this size takes several months of regulatory approvals and investor roadshows. Once the IPO is done, Reliance Industries would have more capital to deploy into new markets. Africa’s growing populations and rising smartphone use make it an attractive region for global telecom investors.
Jio’s parent company, Reliance Industries, reported annual revenues of over $100 billion in its most recent financial year. The company operates in oil and gas, retail, and digital services across India. Any such expansion would mark one of the biggest moves by an Indian firm into Africa’s telecom sector.
Emma Collins is a business and financial journalist reporting on South Africa’s economy. She covers the Johannesburg Stock Exchange (JSE), rand movements, Reserve Bank policy, mining and resources, and the country’s emerging startup ecosystem. Emma’s reporting helps readers understand how economic decisions by government and corporations affect everyday South Africans. She has tracked major developments at Eskom, Transnet and the National Treasury.