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MTN Group Moves to Sell Some West Africa Assets

MTN Group Moves to Sell Some West Africa Assets

MTN Group is in advanced talks with Axian Group to sell some of its West African markets, according to people familiar with the matter, as Africa’s largest mobile operator trims its portfolio.

According to Bloomberg, the South African telco is looking to trim its portfolio. The publication noted that negotiation are on prices for MTN’s assets in Liberia, Guinea-Bissau and Guinea-Conakry, said the people, who asked not to be identified as the information is private. The deal has not been finalised, and there is no guarantee that a transaction will go ahead, they said.

Also Read: MTN Group CEO, Ralph Mupita, Lauds NGX for Democratising Access to Financial Securities

Although no deal has been finalized as of yet, the trio of countries accounted for just 1.6 percent of MTN’s total revenue for 2022 and are far less lucrative markets for the operator than other Western African markets such as Nigeria and Ghana.

it is to noted that, MTN operates in 19 markets, including Benin, Cameroon, Ivory Coast, Rwanda, and more. The operator has recently departed other markets including Afghanistan, Syria, and Yemen in the Middle East. Also, in the past week, the telco has experioutages due Internet outages due to the prolonged crisis in Sudan.

Also Read: MTN Group Revenue Rises to N4.9 Trillion, Subscribers Hit 289 Million in 2022

MTN’s Group CEO, Ralph Mupita, has been evaluating the company’s portfolio as the mobile phone company narrows its focus and resources on core markets, which include its biggest West African assets Nigeria and Ghana. MTN operates in 19 countries in the region, and has exited certain Middle Eastern businesses such as Afghanistan, Yemen and Syria.

Africa, which has a young population and a burgeoning market for smartphones, has proved to be an attractive place for companies targeting telecommunications deals. In 2022, Axian bought Millicom International Cellular’s Tanzanian operations. The firm’s telecoms unit has invested in towers, undersea cables, data centres and fintech as well as a number of phone operators in countries such as Madagascar and Senegal.

Vodacom Group attracted interest from Emirates Telecommunications Group as its parent company, Vodafone Group, weighs options for the business, people familiar with the matter said in December. Telecel Group, headed by French tycoon Hugues Mulliez, bought Vodafone’s operations in Ghana earlier this year.

About Bukola Olanrewaju

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