MTN, in its 2023 financial report, disclosed the conclusion of an agreement in December, contingent upon specific conditions precedent. The telecommunications giant highlighted Telecel, a well-established operator across Africa, as the entity poised to drive growth and development in the designated operations, fostering technological advancement and economic prosperity within the respective markets.
The report underscores MTN’s commitment to ensuring a seamless transition for its customers, employees, and all stakeholders throughout the process. While the exact financial details of the sale remain undisclosed, MTN has committed to providing further updates on the transaction as appropriate.
Market Performance MTN hinted at potential exits from Guinea-Bissau, Guinea-Conakry, and Liberia, citing various challenges encountered across the West and Central Africa region. CEO Ralph Mupita pointed to indicators such as inflation and currency devaluation affecting several markets.
In these countries, MTN commands a significant market share, approximately 30% in Guinea-Bissau and Guinea-Conakry. Financial difficulties in Guinea-Bissau stemmed from a breach of loan covenant due to negative EBITDA performance, resulting in a reported loss of R1.69 billion ($89,392,809) in the annual report.
The decision to exit these markets enables MTN to redirect its focus towards strengthening its presence in robust markets like Ghana, Cameroon, Nigeria, and Cote d’Ivoire within the West and Central Africa region. Collectively, these markets contribute substantially more to the group’s revenue compared to other countries in the same region.
The audited financial results for the year ended 31 December 2023 in Nigeria revealed a challenging operating environment characterized by rising inflation, currency devaluation, and foreign exchange shortages.
Beyond the African continent, MTN divested 100% of its shares in MTN Afghanistan to Investcom AF, accompanied by a six-month transitional services agreement.
