Telecommunication giant, MTN Group, has revealed its plans to exit African countries it had described as “smaller markets” in the West and Central Africa region.
This news is coming as MTN Group revealed that it had accepted an undisclosed offer from Africa-focused telecommunication service, Telecel, for the purchase of its equity interests in MTN Guinea-Bissau and Guinea-Conakry.
MTN’s spokesperson confirmed the sale of the business segments but had refused to reveal how much exactly, the sale would cost.
MTN had also revealed in the report that its Guinea-Bissau and Guinea-Conakry businesses have been classified as held for sale as of December 31, 2023.
It was reported that this move will allow MTN to focus on Ghana, Cameroon and Cote d’Ivoire, which are stronger markets in the West and Central African region that collectively contribute 18.6% to its revenue, over other West and Central African countries that contribute 7.3% to the revenue of the group.
Whereas the value of the sale remains undisclosed, MTN has said further updates regarding the transaction will be provided as at when due.
But it has been noted that the new development will enable MTN to prioritise its operations in stronger markets such as Ghana, Cameroon, and Cote d’Ivoire in the West and Central Africa region.
The Telecom group further stressed inflation and currency devaluation across several markets as part of the group’s reasons for exiting Guinea-Bissau, as the Chief Executive Officer (CEO), Ralph Mupita.
Across these countries, MTN controls a secondary chunk of the market share, up to about 30 percent in Guinea-Bissau and Guinea-Conakry.
