MTN has hinted at a possible exit from Guinea-Bissau, Guinea-Conakry, and Liberia, citing several obstacles in the West and Central Africa region.
Inflation and currency devaluation were identified as major difficulties in numerous areas by CEO Ralph Mupita. MTN has a considerable market share in Guinea-Bissau and Guinea-Conakry, accounting for almost 30%.
However, financial difficulties emerged in Guinea-Bissau as a result of a breach of loan covenant caused by negative EBITDA performance, resulting in a reported loss of R1.69 billion ($89,392,809) in the annual report.
MTN’s decision to depart these markets will allow it to focus on stronger markets in West and Central Africa, such as Ghana, Cameroon, Nigeria, and Cote d’Ivoire.
These markets contribute 18.6% of the group’s revenue, compared to 7.3% for other West and Central African countries.
MTN faced a difficult operating environment in Nigeria, with rising inflation, currency depreciation, and foreign exchange shortages, as indicated by the audited financial statements for the fiscal year ended December 31, 2023.
Furthermore, outside of Africa, MTN sold its full investment in MTN Afghanistan to Investcom AF and signed a six-month transitional services agreement.
Telecel plans to purchase MTN.
MTN has finalised a share acquisition deal with Telecel, a telecommunications company, to acquire MTN’s holding interests in MTN Guinea-Bissau and MTN Guinea-Conakry.
This transaction was announced in MTN’s 2023 financial report and is subject to a number of conditions.
“As we advance through this transition, MTN is focused on ensuring a smooth and seamless transition for our customers, employees and all other stakeholders,” the financial statements said in part.
Telecel was chosen to strategically accelerate the expansion and advancement of these projects, promoting technological and economic development in these regions.
The sale’s valuation has not been disclosed; however, MTN adds that additional information about this transaction will be supplied as needed.