New Zain program aims to push company to market top by 2011

06.05.2009
Zain, Africa's second-largest mobile service operator, has announced a new program dubbed "Drive2011," aimed at propelling the company toward its target of being a top 10 global mobile-telecom operator by 2011.

Drive2011 will help streamline the company's core operations and services, and assist in continual assessment of Zain's growth plan. Zain Group CEO Saad Al Barrak said the new program will realize significant efficiencies, allowing Zain to provide communication services such as voice, SMS (short message service) and data at an optimum cost as the company moves to expand.

Drive2011 is expected to improve Zain's operating margin by 5 percent within 12 months and provide the ability to capture future growth in markets where Zain operates, Al Barrak said.

Zain operates in 23 countries in Africa and the Middle East, including Kenya, Zambia, Malawi, Bharain and Jordan, with a workforce of more than 15,000. However, the new program will result in the loss of 2,000 jobs, or a 13 percent workforce reduction across the board.

"Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in the reduction of workforce across the board," Al Barrak said.

While Zain is viewed as being well on track to becoming a top global operator, as the company's investments in merging markets have positioned it to ensure long-term growth, it is the first mobile service provider in Africa to announce job cuts. Communication experts believe that the move is aimed at withstanding the global economic crisis that has heavily affected many countries on the continent, resulting in job losses as many companies are closing.