Telecel Group, an Africa-focused telecommunications company, has made significant strides in expanding its operations by acquiring two West African units from MTN Group Ltd., Africa’s largest wireless company. This strategic move comes as Telecel gears up for an initial public offering (IPO) within the next three years.
The acquired assets include MTN’s debt and equity in Guinea-Bissau and Guinea-Conakry, demonstrating Telecel’s commitment to strengthening its foothold in the region. This acquisition follows Telecel’s previous purchase of Vodafone Group Plc’s operations in Ghana last year, showcasing its strategic expansion efforts.
Moh Damush, CEO of Telecel Group, revealed that the company is eyeing listings in international stock exchanges such as Dubai and London. Additionally, Telecel expressed interest in exploring listing opportunities on African bourses in the future, underscoring its dedication to leveraging Africa’s growing telecommunications market.
Africa’s youthful and rapidly expanding population presents a lucrative market for telecommunications companies like Telecel. However, operating in African markets also poses challenges such as inadequate energy infrastructure and catering to consumers with lower income levels. Despite these challenges, Telecel remains optimistic about its growth prospects in the region.
Looking ahead, Telecel aims to diversify its portfolio further by exploring acquisitions in the financial services and technology sectors. Damush emphasized that the company is actively seeking financing from various sources to support its expansion strategy, including shareholders, Africa-focused funds, banks, and equity investors.
Under the leadership of Damush, along with partners Hugues Mulliez and Nicolas Bourg, Telecel has been steadily expanding its presence across multiple African markets, including Ghana, Central Africa Republic, and Liberia. With a focus on strategic acquisitions and potential listings on international and African stock exchanges, Telecel is well-positioned to capitalize on the continent’s evolving telecommunications landscape and drive sustainable growth in the coming years.
This move comes after MTN Group’s strategic decision to exit the Guinea-Bissau and Guinea-Conakry markets, as outlined in its recent 2023 report. MTN 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. MTN Group aims to focus on strengthening its presence in key regional markets while ensuring a smooth transition for all stakeholders involved.
Despite facing challenges such as high inflation and ongoing political tensions, MTN Group reported a revenue growth of 13.5% in 2023, driven by its data products and mobile money services. The group remains optimistic about its future prospects as it continues to expand its reach and enhance its services across all markets.
