Altech to sell off West African business
Allied Technologies Limited (Altech) has announced that it plans to dispose of its 75% share in Altech West Africa Limited (AWA).
Altech said in a statement that AWA launched in Nigeria, in 2005. The company produces cash recharge vouchers for the cellular network operators in Nigeria and has more recently commenced the manufacture of plastic card products for Nigerian banks and other clients.
While AWA was highly profitable for most of the time since its inception, it has become loss-making during the last 18 months. Altech says this is due to a reduction in demand for its secure recharge vouchers (as opposed to cheaper non-secure products made by other suppliers) and delays in the up-take of plastic chip cards by banks. In addition, its “pioneer industry” tax-free status expired recently.
These factors, plus the costs involved in maintaining Altech management control of AWA from South Africa, additional investment required to enhance AWA’s production facilities, as well as the fact that AWA‘s product area is non-core to the Altech group, has prompted Altech to reached agreement to dispose of its 75% interest in AWA.