South Africa’s Allied Technologies said on Wednesday it had agreed to sell 75 percent stake in its money-losing Altech West Africa (AWA) operations in attempt to stem losses from outside its home market.
The telecom and IT firm, which also reported a 19 percent fall in first-half profit, has been trying to turn around business in both East and West Africa.
The group said that taking into account the losses and operator costs involved in maintaining Altech management control of AWA from South Africa, additional investment required to enhance its production facilities, and the fact that AWA’s product area is non-core to the Altech group, it reached an agreement to dispose of its 75 percent interest.
Altech West Africa commenced business in Nigeria in 2005 and produces cash recharge vouchers for mobile operators in Nigeria.
More recently, the company commenced the manufacture of plastic card products for Nigerian banks and other clients.