by fabulous reports
– MTN ad board
MTN Group is exiting two markets in West Africa and Central Africa (WECA), revealing in its recent 2023 report that it agreed in December to sell its equity interests in Guinea-Bissau and Guinea-Conakry to Telecel following a sale and purchase agreement in December 2023.
Subject to regulatory approval, the acquisition allows MTN to focus on its robust regional markets, such as Ghana, Cameroon, and Cote d’Ivoire. In 2023, they collectively contributed more than 18% to the group’s revenue compared to other markets.
As the transition advances, MTN stated it would ensure a smooth transition for customers, employees and all other stakeholders.
MTN Group believes Telecel is well-positioned to grow and expand in these markets.
In the report, MTN revealed that in October 2023, the Group received a binding offer for the sale of MTN Guinea-Bissau and MTN Guinea-Conakry for $1 per company, followed by a sale and purchase agreement with Telecel later that year.
“Assets and liabilities of both MTN Guinea-Bissau and MTN Guinea-Conakry have been presented as held for sale,” MTN said in the report.
Besides, despite a challenging year, MTN Group increased revenue by 13.5% to R210 billion ($11 billion) in 2023, with total subscribers reaching 295 million across all markets. High inflation, forex volatility and scarcity, and ongoing political tensions in some markets are among the challenges.
Its data products and mobile money contributed to the revenue growth. Also, about one-third of the volume and value of its fintech transactions came to $272 billion and 17.6 billion, respectively, adding to its growth.
This is not Telecel’s first acquisition of a telco in the region. Telecel Global Services received $20 million in February 2024 from the Africa Credit Opportunities Fund (ACOF), a private credit fund, and Telecel Group to expand its services in West Africa.
Before that, in Ghana, Vodafone Ghana said it was rebranding to Telecel Ghana after the telco acquired a 70% stake in Vodafone Ghana about a year ago
