Telecommunications behemoth MTN Group has unveiled plans to divest from what it termed "smaller markets" in the West and Central Africa region, signaling its intent to exit operations in Guinea-Bissau and Guinea-Conakry. The decision, outlined in MTN's 2023 financial report, follows the acceptance of an undisclosed offer from Telecel, an Africa-focused telecommunications service provider, for the acquisition of MTN's equity interests in the two countries.
While specific details of the transaction remain confidential, MTN confirmed the sale of its Guinea-Bissau and Guinea-Conakry businesses, designating them as held for sale as of December 31, 2023. According to MTN's financials, Telecel's established presence in Africa positions it well to drive growth and development in these markets, contributing to technological advancement and economic progress.
The move underscores MTN's strategic shift towards consolidating its operations in stronger markets such as Ghana, Cameroon, and Cote d'Ivoire, which collectively contribute significantly to the group's revenue. CEO Ralph Mupita cited signs of inflation and currency devaluation across several markets as factors influencing MTN's decision to prioritize its operations.
In Guinea-Bissau, MTN encountered financial challenges, reporting a loss of R1.69 billion ($89.39 million) in its annual report due to negative EBITDA performance. Despite controlling a significant portion of the market share in Guinea-Bissau and Guinea-Conakry, MTN's focus on markets with greater revenue contribution reflects its strategic realignment amid evolving economic conditions.
As MTN navigates the complexities of the African telecommunications landscape, the company's decision to streamline its operations underscores its commitment to sustainable growth and profitability in the region
