African telecommunication giant, MTN, is reportedly considering an exit from three markets on the continent, namely Guinea-Bissau, Guinea-Conakry, and Liberia.
This potential move, as reported by Business Insider Africa, is part of discussions surrounding the “orderly exit” of operations in these countries.
MTN, a pan-African mobile operator with a current presence in 19 countries across Africa and the Middle East, is contemplating this strategic shift. While the specific reasons for the potential exit have not been disclosed, the company’s financial reports indicate challenges in the West and Central Africa region.
CEO Ralph Mupita highlighted signs of inflation and currency devaluation across several markets in the region. The company’s 2022 financial year-end report revealed a decline in the EBITDA margin by 1.7 percentage points to 33.1%, citing pricing pressures, fintech channel subsidies, and macroeconomic challenges, including local currency devaluations and higher inflation.
According to Bloomberg, the three countries under consideration for exit—Guinea-Bissau, Guinea-Conakry, and Liberia—contribute only 1.6% to MTN’s total revenue in 2022. These markets also represent a secondary share of the telecom market, with MTN holding about 30% market share in Guinea-Bissau and Guinea-Conakry, and being the second-largest telecom in Liberia through Lonestar MTN.
