French operator Orange has unveiled ‘Engage 2025’, its new strategic plan following on from the Essentials2020 launched in 2015
Orange has highlighted three areas of growth: Africa and the Middle East, financial services and B2B growth drivers.
The operator added that the group revenues are expected to grow at a compound annual growth rate (CAGR) of around five per cent in Africa and the Middle East region in the 2020-2023 period.
Orange has the ambition to be the leading digital operator in Africa and the Middle East. To this end, the group will initially rely on the growth in mobile data-driven by increased smartphone penetration and 4G deployment.
In 2020, Orange will have deployed 4G in almost all countries where it operates, relying on RAN-sharing agreements and innovative technologies such as lighter pylons to extend its coverage in rural areas. Finally, in Africa and the Middle East, Orange will continue its efforts to offer increasingly affordable smartphones.
Finally, in financial services, Orange Bank, which has attracted 500 000 customers in its two years of operation, will be launched in all European countries where the group operates by 2025.
Banking services, such as micro-credit, will also be launched in Africa and the Middle East from 2020 to extend the range of services already offered through Orange Money. Capitalising on the success of offers combining banking and telecoms (device financing, cashback on shop purchases, etc.), Orange Bank will develop new products relating to payment, credit and insurance, and is working on a specific digital banking offer for professionals and small businesses.
Orange Bank will break-even in Europe towards the end of 2023, with nearly five million customers and around US$444mn in net banking income. Orange Bank Africa will reach nearly 10 million customers by 2023 with net banking income of about US$111mn.
In addition, the group wants to become more B2B-orientated, and its cybersecurity operations will be increasingly important to support growth, exceeding US$1.1bn in revenues by 2023.
