MTN Group plans market exit and sells stakes in Guinea-Bissau, Guinea-Conakry to Telecel

The MTN Group has made the strategic decision to withdraw from two West and Central African markets, as outlined in its recent 2023 report. The telecom giant has agreed to sell its equity interests in Guinea-Bissau and Guinea-Conakry to Telecel as of December 2023, pending the necessary regulatory approvals.

This move will enable MTN to concentrate on strengthening its presence in key regional markets such as Ghana, Cameroon, and Cote d’Ivoire, which together accounted for over 18% of the group’s revenue in 2023. MTN is committed to managing this transition smoothly for all parties involved, including customers, employees, and stakeholders. The group is confident in Telecel’s capabilities to foster growth and expansion in these markets.

According to the MTN report, the group received a binding offer of $1 per company for the sale of MTN Guinea-Bissau and MTN Guinea-Conakry in October 2023, leading to the sale and purchase agreement with Telecel. In preparation for the anticipated transition, both MTN Guinea-Bissau and MTN Guinea-Conakry’s assets and liabilities have been listed as ‘held for sale,’ as stated in the report.

Despite facing a challenging year due to factors such as high inflation, forex volatility, scarcity, and ongoing political tensions in certain markets, MTN Group still managed to increase its revenue by 13.5% to R210 billion ($11 billion) in 2023, boasting a total subscriber count of 295 million across all markets.

The revenue growth of MTN Group is significantly boosted by its data products and mobile money services. Furthermore, approximately one-third of the volume and value of its fintech transactions, amounting to $272 billion and 17.6 billion respectively, have contributed to its expansion.

This is not Telecel’s inaugural acquisition of a telecommunications company in the region. In February 2024, Telecel Global Services received $20 million from the Africa Credit Opportunities Fund (ACOF), a private credit fund, and Telecel Group in a bid to extend its services in West Africa. This followed Telecel’s acquisition of a 70% stake in Vodafone Ghana approximately a year ago, leading to a rebranding of Vodafone Ghana as Telecel Ghana.