MTN Exits Two African Countries in Bid to Refocus on High-Growth Markets

MTN has been reshaping its business model for several years. Last February, the company completed the sale of its Afghan subsidiary to Investcom AF, marking its final departure from the Middle East, except for Iran.

In December 2023, MTN Group reached a deal with Telecel to sell its shares in its Guinea and Guinea-Bissau subsidiaries. The South African telecom company provided details about this move in a recent statement.

As per the deal, MTN will receive a nominal $1 for each subsidiary involved. The completion of the deal depends on fulfilling several conditions. This move aligns with MTN's strategy, called "Ambition 2025," aimed at optimizing its asset portfolio. In 2023, MTN mentioned that it was considering an offer from Axian Telecom to acquire its operations in Guinea, Guinea-Bissau, and Liberia. By February 2024, MTN had finalized the sale of its Afghan subsidiary to Investcom AF, thereby completing its withdrawal from the Middle East, Iran excluded.

Exiting smaller markets like Guinea and Guinea-Bissau will allow MTN to concentrate on more lucrative markets such as Côte d’Ivoire, Nigeria, Ghana, and South Africa, where the competition is heating up. The company is also looking to invest in expanding and modernizing its network infrastructure and rolling out new technologies like 5G.

On the other hand, this sale is expected to boost Telecel's growth and solidify its position in the African telecoms market. The group, which operates in several African countries, including Ghana where it acquired a 70% stake in Vodafone Ghana from the Vodafone Group in 2023, stands to benefit from this transaction.

March 26, 2024