MTN Group, Africa’s leading network operator by subscriber base, has agreed to an undisclosed offer from Telecel, a telecommunications 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 broader strategy to exit smaller markets in the West and Central Africa (WECA) region, as revealed in its 2023 financial report.
While confirming the sale, a spokesperson for MTN declined to disclose the transaction’s financial terms. However, MTN disclosed in its financials that its Guinea-Bissau and Guinea-Conakry businesses were classified as held for sale as of December 31, 2023.
According to MTN, Telecel, an established telecoms operator with a strong presence across Africa, is well-positioned to drive growth and development in these markets, contributing to technological advancement and economic progress.
This decision will enable MTN to concentrate its resources on key markets such as Ghana, Cameroon, and Cote d’Ivoire, which collectively contribute 18.6% to the group’s revenue in the West and Central Africa region. This strategic focus on stronger markets contrasts with other West and Central African countries that contribute only 7.3% to the firm’s revenue.
MTN Guinea-Bissau experienced financial difficulties, 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 resulted in a loss of R1.69 billion ($89,392,809), according to the company’s annual report.
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