MTN Group has successfully sold its West African subsidiary, MTN Guinea-Bissau, to Telecel.Â
This move is part of MTN’s plan to reshape its business by focusing on larger and more profitable markets.
In March 2024, MTN announced that it would be leaving two West and Central African markets—Guinea-Bissau and Guinea-Conakry—after agreeing to sell them to Telecel in December 2023.
MTN Guinea-Bissau had been struggling financially, becoming insolvent in December 2023 after failing to repay a $9.3 million loan.
The company’s debts had grown larger than its assets, making it difficult to continue operations.
MTN decided to focus on larger markets such as Ghana, Cameroon, and Côte d’Ivoire, which contribute significantly to its overall revenue.
On the other hand, Telecel is expanding its presence in West Africa.
In February 2024, Telecel Global Services received $20 million to support this expansion, and in February 2023, it acquired Vodafone Ghana.
MTN Ghana, one of the company’s key markets, reported a 31.2% increase in service revenue in the first half of 2024.
Additionally, MTN Ghana is close to finalizing a long-term infrastructure-sharing agreement with Telecel.
MTN has assured customers, employees, and other stakeholders in the affected markets that the transition will be smooth and without disruptions.
