MTN sells shares in Guinea-Bissau and Guinea-Conakry

The agreement, finalized in December 2023, is subject to certain conditions before it's official, as stated in MTN’s financial report for 2023.

MTN highlights that Telecel, an established player in the telecom industry across Africa, is well-equipped to drive growth and innovation in these markets, contributing to their technological and economic advancement.

"As we navigate through this transition, MTN is committed to ensuring a smooth handover for our customers, employees, and all stakeholders involved," the financial report notes.

While the exact value of the sale remains undisclosed, MTN assures that updates on the transaction will be provided when necessary.

Why the Exit?

MTN had hinted at a potential exit from Guinea-Bissau, Guinea-Conakry, and Liberia in its financial reports, citing various challenges across the West and Central Africa region. CEO Ralph Mupita pointed to inflation and currency devaluation across several markets.

In Guinea-Bissau, MTN faced financial challenges due to a breach of loan covenant caused by negative EBITDA performance. The company reported a loss of R1.69 billion ($89,392,809) in its annual report.

With this new development, MTN aims to focus on stronger markets like Ghana, Cameroon, Nigeria, and Cote d’Ivoire, which collectively contribute significantly to the group’s revenue compared to other West and Central African countries.

In Nigeria, for example, MTN faced a tough operating environment marked by rising inflation, currency devaluation, and foreign exchange shortages, as indicated in its audited financial results for the year ended December 31, 2023.

Beyond Africa, MTN has divested its shares in MTN Afghanistan to Investcom AF, along with entering a six-month transitional services agreement.

MTN’s move reflects its strategy to streamline operations, focusing on markets with greater potential for growth and profitability while ensuring a smooth transition for all stakeholders involved.

This content was created with the help of an AI model and verified by the writer.