African telecommunications giant MTN is considering exiting three markets in West and Central Africa: Guinea-Bissau, Guinea-Conakry, and Liberia.
This move will reduce MTN’s footprint in the region from 19 to five countries. The company has not disclosed its reasons for exiting these markets, but its financial reports show that it is facing challenges across the region, including inflation and currency devaluation.
The three countries in question are not major contributors to MTN’s revenue, accounting for only 1.6% of its total revenue in 2022. MTN has a secondary market share in these countries, with about 30% in Guinea-Bissau and Guinea-Conakry. In Liberia, Lonestar MTN is the second-largest telecom.
The decision to exit these markets is not unexpected. In May, MTN was reportedly in advanced talks with Axian Group Limited to sell some of its assets in these countries.
MTN’s exit from these markets is a sign of the challenges facing telecom operators in Africa. The continent is experiencing rapid economic growth, but it is also facing a number of challenges, including inflation, currency devaluation, and security issues. These challenges are making it difficult for telecom operators to operate profitably.
MTN’s decision to exit these markets is also a sign of the company’s focus on its core markets. MTN is the largest telecom operator in Africa, and it is focused on investing in its core markets, such as Nigeria and South Africa.
It remains to be seen how MTN’s exit from these markets will impact its customers and employees in these countries. However, it is clear that the company is facing challenges in Africa, and it is taking steps to streamline its operations and focus on its core markets.
