Lagos, March 26, 2024 – MTN is contemplating divesting from Guinea-Bissau, Guinea-Conakry and Liberia to address challenges affecting its operation in the West and Central Africa region.
The decision, which aligns with MTN’s “Ambition 2025” strategy, comes due to issues highlighted by MTN CEO Ralph Mupita, including inflation and currency devaluation.
MTN’s presence in Guinea-Bissau and Guinea-Conakry, where it owns around 30% of the market share, has been slowed by financial struggles.
MTN Group, Africa’s largest network operator by subscriber base, has accepted an undisclosed offer from Telecel , Africa-focused telecommunication service, , for the sale of its equity interests in MTN Guinea-Bissau and Guinea-Conakry.
MTN also considering exiting smaller markets in the West and Central Africa (WECA) region as revealed in its 2023 Annual Report.
A spokesperson for the telco confirmed the sale of the business segments, but declined to comment on how much the sale would cost.
Further, in the aforementioned report, MTN shared that its Guinea-Bissau and Guinea-Conakry businesses have been classified as held for sale as of December 31, 2023.
“Telecel, an established telecoms operator with a significant presence in Africa, is well positioned to drive the growth and further development of these operations and contribute to technological and economic progress in these markets,” a note in its financials said.
This move will allow MTN to focus on Ghana, Cameroon, and Cote d’Ivoire, stronger markets in the West and Central Africa region which collectively contribute 18.6% to the group’s revenue, over other West and Central African (WECA) countries that contribute 7.3% to the firm.
MTN Guinea-Bissau recorded some poor performances after it breached a loan covenant as result of its negative EBITDA performance. (EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortisation.) (Courtesy: Techeconomy)
