MTN has been undergoing significant changes to its business model in recent years. In February, the company completed the sale of its Afghan subsidiary to Investcom AF, marking its exit from the Middle East, except for Iran.
In December 2023, MTN Group reached an agreement with Telecel to sell its shares in its Guinea and Guinea-Bissau subsidiaries. The South African telecom company provided details about this move in a recent statement.
According to the deal, MTN will receive a nominal US$1 for each subsidiary involved, subject to fulfilling certain conditions. This aligns with MTN’s “Ambition 2025” strategy, which aims to optimize its asset portfolio. Additionally, MTN had been considering an offer from Axian Telecom to acquire its operations in Guinea, Guinea-Bissau, and Liberia. By February 2024, MTN had finalized the sale of its Afghan subsidiary to Investcom AF, thereby completing its withdrawal from the Middle East, with the exception of Iran.
Exiting smaller markets like Guinea and Guinea-Bissau will enable MTN to focus on more lucrative markets such as Côte d’Ivoire, Nigeria, Ghana, and South Africa. The company also aims to invest in expanding and modernizing its network infrastructure and deploying new technologies like 5G.
On the other hand, this sale is expected to bolster Telecel’s growth and strengthen its position in the African telecoms market. The group, which operates in several African countries, including Ghana, where it acquired a 70% stake in Vodafone Ghana from the Vodafone Group in 2023, is set to benefit from this transaction.
