MTN Group has announced that it has partnered with Rocket Internet to boost e-commerce in the Middle East through MEIH.
Middle East Internet Holding (MEIH) is a joint venture, 50% owned by MTN Group and Rocket, alike.
The announcement follows a similar deal struck up between Rocket Internet and Millicom International, to develop Internet businesses in Africa through Africa Internet Holding (AIH).
Rocket Internet already has a presence in several Middle Eastern countries, and has rolled out a series of high-growth online businesses, including Easytaxi, Lamudi, Namshi and Hellofood.
MTN expects to invest as much as EUR300 million (R4.27 billion) in AIH and MEIH over the next two to four years, pending regulatory approval.
Both transactions (AIH and MEIH) are expected to close in the first and second quarters of 2014, respectively.
“The investment in AIH is in line with MTN’s strategy of bringing the digital world to customers, adapting to their rapidly changing needs and delivering a consistent end-to-end user experience,” MTN said in a statement on Monday (16 December).
“Through MEIH, MTN and Rocket aim to accelerate and further develop the nascent e-commerce market in the Middle East region,” MTN Group CEO, Safiso Dabengwa said today (20 December).