ABN - Africa’s largest mobile phone company MTN (JSE:MTN) has announced it will increase its investment into an Iranian e-commerce business called Iran Internet Group (IIG).
The telecommunications firm already holds a leading position in the Middle Eastern country, but US sanctions have prevented MTN from repatriating profits thus far.
But MTN’s Iranian operation Irancell has recently led a funding round for IIG in order to stimulate growth in the e-commerce group.
IIG aims to support internet companies in the nation, and runs websites such as Snapp.ir, a car-hailing platform, online marketplace Bamilo.com and food-ordering service Zoodfood.com.
Chief digital officer at MTN Herman Singh said: "Over the past two years we have seen incredible growth at IIG, and this investment by our local partner is testament to the strength of the group's business model and management team.”
MTN has set aside about US$700 million in capital expenditure to revamp Iran's e-commerce network infrastructure.