Unitel — Telecoms Giant

Overview

Unitel S.A. is Angola’s largest mobile telecommunications operator, with over 14 million subscribers representing the dominant share of the country’s mobile market. Founded in 2001, Unitel has grown into one of the most commercially significant private enterprises in Angola and is widely regarded as the most anticipated IPO candidate in the country’s history. A potential listing on BODIVA would represent a transformative event for Angola’s equity market, introducing the first non-financial sector company at a scale that could rival the combined capitalization of existing listed securities.

Market Position

Unitel operates in a market of 37.9 million people with a median age of 16.7 — among the youngest demographics in the world. This population structure implies decades of subscriber growth ahead, driven by urbanization, rising smartphone penetration, and increasing demand for mobile data services.

Business Profile

Unitel offers a comprehensive telecommunications portfolio:

• Mobile voice: The backbone of revenue, though voice ARPU (average revenue per user) is under structural pressure as data consumption grows
• Mobile data: The fastest-growing segment, driven by smartphone adoption and demand for internet access. Unitel operates 4G/LTE networks in major cities.
• Mobile money (Unitel Money): A financial services platform that positions Unitel at the intersection of telecoms and fintech, aligned with the ENIF financial inclusion strategy
• Enterprise services: Connectivity and communications solutions for corporate clients, including the oil and gas sector
• International connectivity: Utilizing Angola Cables’ submarine infrastructure for international bandwidth

Ownership and Governance

Unitel’s ownership has undergone significant evolution. The company was originally established as a private joint venture with shareholders including Isabel dos Santos (daughter of former President José Eduardo dos Santos). Following legal proceedings and asset freezes related to anti-corruption investigations, the Angolan state has taken steps to restructure Unitel’s ownership, with the courts and government working to resolve shareholder disputes. The resolution of ownership clarity is a prerequisite for any IPO process.

IPO Potential

A Unitel IPO would be a landmark event for Angola’s capital markets:

• Market capitalization impact: Unitel’s enterprise value — based on subscriber base, revenue, and comparisons with listed African telecoms — could potentially exceed the combined capitalization of all current BODIVA equities (~$3.37 billion), though valuation depends on financial disclosures and market conditions
• Sector diversification: Would add the first telecoms/technology company to BODIVA’s equity market, currently composed of banks (BAI at Kz 100,500, BFA at Kz 118,000, BCGA at Kz 24,000) and insurance (ENSA at Kz 18,000)
• International investor interest: A Unitel listing would attract global emerging market and frontier market telecoms investors, significantly raising Angola’s profile in international equity benchmarks
• PROPRIV programme: Unitel’s partial privatization aligns with the PROPRIV agenda and the PDN 2023-2027 development plan’s capital markets development targets

Economic and Capital Markets Relevance

Unitel’s significance extends beyond its commercial operations:

• Digital economy foundation: Mobile connectivity underpins the digital payments, e-commerce, and fintech ecosystem that supports economic diversification
• Financial inclusion: Unitel Money and mobile banking services contribute to the ENIF agenda of expanding financial access beyond the 49% inclusion rate
• Tax revenue: As one of Angola’s largest non-oil companies, Unitel contributes substantial tax revenue to AGT, supporting non-oil fiscal diversification
• Employment: Direct and indirect employment across Angola’s 18 provinces

Investor Considerations

A Unitel IPO would reshape the investable universe for Angola. Key factors for prospective investors include:

• Ownership resolution: Legal clarity on shareholder structure is a prerequisite for listing
• Financial transparency: Publication of audited financial statements to international accounting standards
• Regulatory environment: Telecoms sector regulation, including tariff frameworks, spectrum allocation, and competition policy
• Currency dynamics: Revenue is predominantly in kwanza (USD/AOA at 914.60), while network equipment and technology costs are denominated in USD
• Growth trajectory: Subscriber growth, data ARPU trends, and mobile money adoption rates
• Comparable valuations: African telecoms peers (MTN, Safaricom, Airtel Africa) provide valuation benchmarks, though a frontier market discount would likely apply given Angola’s sovereign ratings (S&P B- / Moody’s B3 / Fitch B-)

Unitel’s path to BODIVA will be closely watched by investors globally as the single most important potential catalyst for Angola’s equity capital markets development.