MTN Group has announced its decision to exit the Guinea-Bissau and Guinea-Conakry markets in West Africa and Central Africa (WECA), as part of its strategy to focus on its regional markets, including Ghana, Cameroon, and Cote d’Ivoire, which collectively contributed more than 18% to the group’s revenue in 2023.
According to MTN’s recent 2023 report, the company agreed in December to sell its equity interests in Guinea-Bissau and Guinea-Conakry to Telecel, following a sale and purchase agreement. The acquisition, subject to regulatory approval, will enable MTN to streamline its operations and concentrate on markets with greater growth potential.
MTN Group has stressed that it is committed to ensuring a smooth transition for customers, employees, and all stakeholders involved. The telecommunications giant believes Telecel is well-positioned to grow and expand its presence in the exiting markets.
The sale of MTN Guinea-Bissau and MTN Guinea-Conakry follows a binding offer received by MTN Group in October 2023, with Telecel acquiring the companies for $1 each. As a result, the assets and liabilities of both subsidiaries have been presented as held for sale in MTN’s financial report.
Despite facing challenges such as high inflation, forex volatility, and political tensions in some markets, MTN Group reported a revenue increase of 13.5% to R210 billion ($11 billion) in 2023. The company’s data products and mobile money services contributed significantly to this growth.
Telecel’s acquisition of MTN’s subsidiaries in Guinea-Bissau and Guinea-Conakry marks its latest move in expanding its presence in the region. The company received $20 million in February 2024 from the Africa Credit Opportunities Fund (ACOF) and Telecel Group to support its expansion efforts in West Africa.
Furthermore, Telecel has previously made significant acquisitions in the telecommunications sector, including acquiring a 70% stake in Vodafone Ghana, which led to the rebranding of Vodafone Ghana to Telecel Ghana about a year ago.
