Kelvin Bowoto
MTN Group, Africa’s largest network operator by subscriber base, has accepted an undisclosed offer from Telecel, an Africa-focused telecommunications service, for the sale of its equity interests in MTN Guinea-Bissau and Guinea-Conakry, as it seeks to exit smaller markets in West and Central Africa. This development was reported in MTN’s 2023 financial results.
A telco representative confirmed the sale of the business sectors but did not disclose the cost.
Additionally, according to the aforementioned report, MTN’s Guinea-Bissau and Guinea-Conakry companies are classified as held for sale as of December 31, 2023.
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“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,” according to a note in its financial statements.
This move will allow MTN to focus on Ghana, Cameroon, and Cote d’Ivoire, which are stronger markets in the West and Central Africa region that jointly generate 18.6% of the group’s income, rather than other West and Central African (WECA) countries that contribute 7.3%.
MTN Guinea-Bissau had some dismal results after breaching a loan condition due to its negative EBITDA performance. (EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.)
According to MTN Guinea-Bissau’s annual report, the conversion of its financial results into its main currency resulted in a loss of R1.69 billion ($89,392,809).
Techrectory with Agency Report.
