The Ministry of Finance and Budget in Central African Republic closed Telecel’s offices due to $4.4 million in unpaid taxes, including 7% tax on final calls. The telecom company’s debt reached 689 million CFA francs ($1,136,835) under the new law, with additional amounts owed. The situation may affect the quality and availability of Telecel’s services in the country if not resolved.
Despite this setback, Telecel Central Africa laid the foundation for its new state-of-the-art headquarters in Bangui in May 2024. Malek Atrissi, Chairman of the Board of Directors of Telecel Centrafrique, highlighted their pioneering role in launching fiber optics in the CAR and emphasized the company’s commitment to innovation and digitalization.
Telecel faces competition from Orange, Moov Africa, and Socatel in the region. Besides the CAR, Telecel operates in Gabon, Equatorial Guinea, the Democratic Republic of the Congo, and Chad, serving over six million active customers. The company expanded its footprint by acquiring two of MTN’s markets in West Africa and Central Africa (WECA) following a sale and purchase agreement in December 2023.
Telecel Group, in February 2024, secured $20 million from the Africa Credit Opportunities Fund (ACOF) to expand its operations in West Africa. Additionally, Vodafone Ghana rebranded to Telecel Ghana after its acquisition by Telecel.
Telecel is not alone in facing tax issues; Orange was confronted by the government in April 2024 for increasing transaction fees on its mobile money platform in response to a new 1% tax.
The competition in the CAR’s telecom market is intense, with total telecom service revenue valued at $101.7 million in 2022 and expected to grow by over 10% between 2022 and 2027. This growth is driven by increasing adoption of 3G and 4G services and fixed broadband services, supported by government efforts to expand the fiber network and improve connectivity.
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