MTN has signaled a potential departure from Guinea-Bissau, Guinea-Conakry, and Liberia, as it highlighted numerous challenges in the West and Central Africa region.
The CEO Ralph Mupita noted inflation and currency devaluation as major issues across several markets. In Guinea-Bissau and Guinea-Conakry, MTN holds a significant portion of the market share, approximately 30%, according to nairametrics.
However, a reported loss of R1.69 billion ($89,392,809 in the annual report) led to financial difficulties in Guinea Bissau as a result of a breach of the loan contract due to a negative EBITDA performance.
The decision to exit these markets will allow MTN to focus on stronger markets like Ghana, Cameroon, Nigeria, and Cote d’Ivoire in the West and Central Africa region.
These markets collectively contribute 18.6% to the group’s revenue, compared to the 7.3% contribution from other West and Central African countries.
As shown in the audited financial statements for the year ended 31 December 2023, MTN encountered a challenging operating environment due to rising inflation, currency depreciation and foreign exchange shortages in Nigeria.
In addition, MTN divested its entire shareholding in Afghanistan to Investcom AF and has entered into a six months transitional service agreement.
