MTN Shuts Down Operations in African Country, Sells Business to Another Firm
- MTN Group has announced plans to exit Guinea Conakry in a strategic move to concentrate on other viable African markets
- The company disclosed earlier that Telecel Group Mobile had acquired MTN Guinea Bissau
- The firm is exiting many markets in West Africa, choosing to concentrate resources in Nigeria and Ghana, its biggest markets
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
MTN Group has finalised plans to sell its operations in Guinea Conakry.
The deal was concluded on December 30, 2024, and aligns with the company’s strategy to simplify its portfolio and earmark funds to countries where it has an advantage to impact, ensure long-term growth, and make returns.
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MTN sells operations in Guinea
According to reports, the telecom giant’s president and CEO, Ralph Mupita, said the move marks a new phase for MTN Guinea-Conakry under local ownership. He thanked staff, customers, regulators, and other stakeholders in the country for their support during its operations.
BusinessDay reports that in May 2023, MTN disclosed that it was in talks with Axian Group to sell some of its West African markets, including MTN Guinea-Conakry, noting that the deal was not finished then.
MTN grapples with revenue challenges
In August, the company said that Telecel Group Mobile had acquired MTN Guinea Bissau.
The company has been grappling with revenue challenges in 2024, with service revenue dropping by 18.5% to 127.37 billion rand in the first nine months of last year.
The firm has been concentrating efforts and resources on core markets, including MTN Nigeria and MTN Ghana, its biggest markets in West Africa,
The telco operates in 19 African countries, leaving some Middle Eastern businesses in Afghanistan, Yemen, and Syria.
MTN moves to apply for banking license
The development comes amid plans by the telco to float a bank after MoMo PSB.
The company plans to acquire a banking licence after the South African Reserve Bank (SARB) begins its national payment system to financial technology firms and non-banking entities.
The telecom giant already has a banking licence in Nigeria with its MoMo Payment Service Bank.
MoMo offers payments and money transfers to individuals and businesses. Clients use their mobile phones to identify digital wallets with funds.
The bank targets small and informal businesses like kiosks and the low-income consumer market, which still depend heavily on cash.
MoMo is one of Nigeria’s biggest PSBs
Reports say MoMo is one of the several fintech firms in Nigeria's 774 local government areas.
The firm participated in SARB’s working group to develop guidelines for direct participation in core banking activities.
The guidelines are essential to balance innovation with risks associated with an open financial system.
Telcos seek 100% increase in call, data tariff
Legit.ng earlier reported that telecom firms in Nigeria had asked the Nigerian Communications Commission (NCC) to approve a 100% tariff increase in the first quarter of this year.
The telcos disclosed this in a proposal submitted to the regulator, saying the hike will help them to address operation costs caused by inflation and the naira depreciation.
Karl Toriola, CEO of MTN Nigeria, communicated the telcos' decision while speaking on AriseTV on Thursday, January 2, 2025.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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