Africa’s leading network operator, MTN Group, has announced its exit from Guinea-Bissau and Guinea-Conakry following an undisclosed offer from Telecel, a prominent telecommunications service provider focused on Africa.
The sale of MTN’s equity interests in the two West and Central African countries was confirmed in the telecom giant’s 2023 financial report. Although specific financial details were not disclosed, MTN Group agreed to sell its equity interests in MTN Guinea-Bissau and Guinea-Conakry to Africa-focused telecommunications provider Telecel. MTN stated its commitment to prioritizing stronger markets in the region, including Ghana, Cameroon, and Cote d’Ivoire.
According to MTN’s financials, the Guinea-Bissau and Guinea-Conakry businesses were classified as held for sale as of December 31, 2023.
Telecel, recognized for its substantial presence in the African telecommunications landscape, is poised to drive growth and development in the acquired operations. MTN expressed confidence in Telecel’s ability to contribute to the technological and economic advancement of the markets in question.
The decision to divest from Guinea-Bissau and Guinea-Conakry comes in the wake of challenges faced by MTN Guinea-Bissau, notably its negative EBITDA performance leading to a breach in loan covenants. The conversion of financial results into MTN Guinea-Bissau’s primary currency resulted in a loss of R1.69 billion ($89,392,809), as indicated in the company’s annual report.
