VEON Ltd.: A Profitable Investment with Significant Growth Potential in Frontier Markets
VEON Ltd. (VEON), a leading telecommunications company, has been identified as a “Strong Buy” by financial analysts due to its discounted valuation and substantial growth potential in key frontier markets, including Ukraine and Pakistan.
Divesting from Russia and Investing in Ukrainian Infrastructure
VEON’s strategic moves over the past few years have positioned the company for success in these markets. The company has divested from its Russian operations, selling its stake in VimpelCom Ltd. for $2.3 billion in 2018. This decision allowed VEON to focus on expanding its presence in countries with higher growth potential, such as Ukraine.
In Ukraine, VEON has invested heavily in infrastructure, including the modernization of its 4G network and the deployment of 5G trials. These investments are expected to drive growth in the country’s telecommunications market, which is projected to reach $4.5 billion by 2026.
Expansion in Frontier Markets and Digital Services
VEON has also expanded its presence in frontier markets, including Pakistan, where it operates through its Jazz subsidiary. Pakistan’s economic growth and young population present a lucrative opportunity for VEON, with a projected population of over 220 million by 2025.
In addition to its telecommunications services, VEON has also expanded its digital services through JazzCash, its fintech platform. JazzCash offers mobile wallet services, digital payments, and microfinance, making it an essential part of daily life for many Pakistanis. The platform had over 11 million active customers as of December 2020, and this number is expected to grow as more Pakistanis adopt digital payments.
Impact on Individuals
For individuals, the growth of VEON in frontier markets like Ukraine and Pakistan presents several opportunities. As the telecommunications and digital services markets expand, there will be an increased demand for skilled professionals in the technology sector. This could lead to job creation and new career opportunities for individuals with the right skills and qualifications.
Impact on the World
At a global level, the growth of VEON in frontier markets could contribute to the digitalization of these economies. Increased access to affordable telecommunications and digital services could lead to improved connectivity and economic growth. Additionally, the expansion of digital payments platforms like JazzCash could help reduce cash transactions and promote financial inclusion.
Conclusion
VEON’s strategic moves in recent years have positioned the company for significant growth in frontier markets like Ukraine and Pakistan. The divestment from Russia, investments in infrastructure, and expansion of digital services are expected to drive growth in these markets. For individuals, this growth could lead to new job opportunities in the technology sector. At a global level, the expansion of telecommunications and digital services in frontier markets could contribute to digitalization and economic growth.
- VEON is a “Strong Buy” with substantial growth potential in frontier markets
- Company has divested from Russia and invested in Ukrainian infrastructure
- Expanded presence in Pakistan through Jazz subsidiary and JazzCash fintech platform
- Growing demand for skilled professionals in technology sector
- Contribution to digitalization and economic growth in frontier markets
