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27 Dec 2022
MTN Group May Be Planning to Sell Some of Its Small Subsidiaries in West Africa
According to Bloomberg, the MTN, Africa's largest telecommunications provider, has announced that it is considering selling some of its smaller West African units. The move is part of a greater restructuring effort that the company has embarked on to streamline its operations and focus on its core markets in Africa.
The telecommunications giant has identified several countries in West Africa, including Benin, Congo Brazzaville, Gabon, Ghana, Guinea Conakry, Guinea-Bissau, Liberia, and Sierra Leone, where it is currently operating smaller businesses. The company has stated that it is exploring various alternatives for these businesses, including the potential sale of these units to local and international investors.
MTN Chief Executive Officer, Ralph Mupita, said: "As part of our ongoing efforts to focus on our core markets and achieve greater scale in our operations, we are exploring the possibility of selling some of our smaller West African businesses. We believe this is prudent and would allow us to serve our customers in our primary markets better."
MTN has also stated that any potential sale of its West African units would be subject to regulatory approval. However, the company has yet to announce when it expects the process to be completed or who the potential buyers might be.
The sources said that two of MTN's biggest markets, Ghana and Nigeria, won't be affected. However, there has yet to be a word on what will happen to MTN's operations outside of South Africa, including those in Ivory Coast, Benin, Liberia, Guinea, and Guinea-Bissau.
As part of their efforts to get out of the Middle East, the operator recently sold off its Afghanistan subsidiary to a Beirut-based investment firm.
However, there are claims of bribery and foul play on the part of ZTE regarding acquiring the 49% stake in the company, which is the first privatized telecommunications company in Iran, despite the objections of Turkcell, which is likely to appeal.
In conclusion, the sale of these businesses could bring new opportunities for local and international investors while also allowing the company to focus on its core markets.
As such, the process is likely to significantly impact both the telecommunications industry in West Africa and the wider African market.
Also read: According to a report from Ericsson, 5G Has Substantial Economic Benefits in Emerging Markets
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