MTN Group, the largest network operator in Africa in terms of subscriber base, has divested its ownership shares in MTN Guinea-Bissau and Guinea-Conakry to Telecel, a telecommunications service provider focused on Africa.
“Telecel, an established telecoms operator with a significant presence in Africa, is well positioned to drive the growth and further development of these operations and contribute to technological and economic progress in these markets,” the company noted in its financial report.
MTN CEO, Ralph Mupita, cited financial challenges including high inflation and currency devaluation as reasons for the exit.
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The telecommunications giant made the announcement in its annual financial report for 2023 noting that despite having a large market share in both countries, it has struggled financially in recent years.
This decision enables the company to concentrate on stronger markets such as:
- Ghana
- Cameroon, and
- Cote d’Ivoire
in the West and Central African region.
These markets collectively contribute 18.6% to the group’s revenue, surpassing the contribution of other West and Central African (WECA) countries, which currently stand at 7.3% for the firm.
Beyond Africa, MTN has also completed the divestment of its entire stake in MTN Afghanistan to Investcom AF. Additionally, the company has initiated a six-month transitional services agreement as part of the process.
“On 21 February 2024, all the conditions precedent were finalised in relation to MTN’s sale of 100% of the shares in MTN Afghanistan to Investcom AF Limited (Investcom AF) and accordingly, the sale has now been completed. The exit from Afghanistan completes the phase of our Middle East exit of our previously consolidated subsidiaries in that region.” reads the company’s 2023 financials, in part.
Despite these divestitures, the company is actively pursuing a new round of investments in its fintech business which experienced a significant surge in transaction volumes by over a third in 2023.
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Currently, the company boasts 72.5 million active users of its mobile-money services, known as MoMo.
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“We are looking at a second round of minority investment into the fintech business. We are open to sell up to 30% of the business at the right valuation,” said Chief Executive Officer, Ralph Mupita.
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