Another firm moves to acquire MTN operations in two African countries

One of Africa’s top telecoms providers, MTN, has signalled plans to exit Liberia Guinea-Bissau and Ginunea-Conakry 

The company said the plan came due to financial constraints caused by inflation and currency devaluation 

It stated that it would sell its stakes to another telecoms provider, Telecel, in those countries and focus on more robust markets 

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade. 

Due to market challenges, Africa’s telecoms giant, MTN, has revealed plans to leave Guinea-Bissau, Guinea-Conakry, and Liberia. 

According to Ralph Mupita, the telecom’s CEO, inflation and currency across several markets are responsible for the move. 

MTN gives reasons for the decision

Reports say MTN holds about 30% of the market share in Guinea-Bissau and Guinea-Conakry. 

Per the report, financial struggles started in Guinea-Bissau due to a breach of a loan contract, arising from negative EBITDA performance, leading to a reported loss of $89.392 million in the company’s annual report. 

The plan to shut down these markets will allow the telecom provider to focus on more robust markets like Ghana, Cameroon, Nigeria, and Cote d’Ivoire in West Africa and Central Africa. 

The markets contribute about 18.6% to MTN’s revenue, compared to the 7.3% from other African countries.