Ratio Blog: Africa Agenda: RIP Celtel, Belatedly.

Wednesday, 10 June 2009

Zain are selling their Africa operations. And I’m taking this oddly personally. By Andrea Bohnstedt. I happened to be in London two weeks ago for the launch of a book written by the ever lovely Russell Southwood from Balancing Act about Mo Ibrahim’s Celtel. Zain had sponsored the function, and Mo Ibrahim was there himself to be honoured. Zain Group CEO Dr. Saad al Barrak was actually funny, not as snappy as he usually is with journalists. The book launched had been delayed quite a bit – as far as I understand, it had been intended as a ‘leaving gift’ to Ibrahim when he sold Celtel to MTC. But now it seems that they just about managed to get the whole thing out of the door before it was all over: Yesterday, I read that Zain are looking to sell their Africa operations.  And I’m taking this oddly personally.  I was at the launch of the core of the One Network, when it still only covered Kenya, Uganda and Tanzania, and remember it being an inspirational moment – it seemed such a common-sensical idea (even if my former Global Insight colleague Emeka isn’t so impressed by cross-network tariffs), and one that wasn’t even reality in the industrialised markets. Like the launch of competitor Safaricom’s M-PESA, global innovation was happening right here in East Africa.  Later, I was in Bahrain when MTC rebranded their Middle East networks as Zain before rolling out the brand across Africa. In the press conference, I asked al Barrak why they were going to give up such a wildly successful brand as Celtel. I was brushed off with some reply that even Coca Cola had to rebrand in China since their name meant something rude – which really had nothing to do with anything. Afterwards, I sat down with Tito Alai, who developed the Celtel brand, to find out a bit more. There was no way they could have used the Celtel brand for their Middle East operations, he said: Celtel was created as an aspirational brand for Africa’s emerging middle classes, and that dynamic was completely different in the wealthy Middle East.  Obviously he seemed sad to let it go: At the continent-wide Zain launch last year, a fabulous party here in Nairobi at the newly refurbished National Museum, I watched Tito’s brief speech in the corporate video about the transition from Celtel to Zain, and as much as he tried to generate excitement about the new brand, he appeared emotional about the end of Celtel. But, we were assured, it was all for a greater good – the fantastic heritage and achievement of Celtel would transmogrify into the even more fantastic future of Zain’s wonderful world. Ah well.  Obviously I realise that there are commercial reasons (ran out of money, it appears) why Zain intend to sell their Africa operations, but I can’t help but feel sad about it:  Celtel was such a great African story and kicking African brand. Killed off a year ago for nothing, it turns out.  RIP Celtel. Again. I’m mourning your pointless demise.  And Kenyans (presumably Nigerians, too) are groaning at the prospect of yet another rebranding. Possibly with the exception of the advertising and paint industry who must be relishing a fourth incarnation. Share this article with others: