MTN set to exit markets over poor economy

by - 13:29:00

MTN Office lounge

MTN Group, Africa's leading network operator in terms of subscriber base, has accepted an undisclosed offer from Telecel, a telecommunication service focused on Africa, for the sale of its equity interests in MTN Guinea-Bissau and Guinea-Conakry. This strategic move is part of MTN's initiative to exit smaller markets in the West and Central Africa (WECA) region, as revealed
in its 2023 financial report.

Although the telco spokesperson confirmed the sale of these business segments, the specific financial details of the transaction remain undisclosed.

MTN's 2023 financials indicated that its Guinea-Bissau and Guinea-Conakry businesses were classified as held for sale as of December 31, 2023. In its financials, MTN expressed confidence in Telecel's ability to drive growth and further development in these markets, citing Telecel's established presence and expertise in the African telecom sector.

This strategic divestment allows MTN to redirect its focus towards stronger markets such as Ghana, Cameroon, and Cote d'Ivoire, which collectively contribute 18.6% to the group's revenue within the West and Central Africa region. This shift in focus underscores MTN's commitment to optimizing its portfolio and maximizing returns for its stakeholders.

MTN Guinea-Bissau faced challenges, including breaching a loan covenant due to negative EBITDA performance. As a result, the process of converting MTN Guinea-Bissau's financial results into its primary currency led to a loss of R1.69 billion ($89,392,809), as outlined in its annual report.

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