MTN Group Initiates Strategic Exit from Guinea-Bissau and Guinea-Conakry

Africa’s telecommunications giant, MTN Group, has embarked on a strategic shift, opting to exit smaller markets within the West and Central African region. In its latest move, MTN has accepted an offer from Telecel, an Africa-focused telecommunications service provider, for the sale of its equity interests in MTN Guinea-Bissau and Guinea-Conakry.

The decision, unveiled in MTN’s 2023 financials, underscores the company’s strategic realignment towards consolidating its operations in stronger markets such as Ghana, Cameroon, and Cote d’Ivoire. These markets collectively contribute a significant 18.6% to MTN’s revenue, making them focal points for future growth and expansion.

While the exact value of the sale remains undisclosed, MTN has affirmed its commitment to providing further updates on the transaction. Telecel, described as an established telecoms operator with a substantial presence in Africa, is poised to assume ownership of MTN’s operations in Guinea-Bissau and Guinea-Conakry, driving growth and technological advancement in these markets.

The decision to divest from these smaller markets comes amidst numerous challenges highlighted in MTN’s financial reports, including signs of inflation and currency devaluation across several West and Central African countries. In Guinea-Bissau, MTN encountered financial difficulties stemming from a breach of loan covenant due to negative EBITDA performance, resulting in significant losses.

By focusing on key markets with greater revenue potential, MTN aims to streamline its operations, optimise resources, and enhance shareholder value. The company’s strategic exit strategy aligns with its long-term vision of consolidating its market position and driving sustainable growth across its core markets.

Outside of Africa, MTN has also divested its shares in MTN Afghanistan, further streamlining its global portfolio. The company remains committed to delivering value to its stakeholders while navigating challenges in a dynamic and evolving telecommunications landscape.

As MTN transitions through this strategic realignment, it remains dedicated to ensuring a smooth and seamless transition for its customers, employees, and other stakeholders. The company’s unwavering focus on innovation, customer satisfaction, and operational excellence will continue to drive its success and solidify its position as a leading telecommunications provider in Africa and beyond.