Telecom giant MTN is reportedly engaged in advanced discussions with Axian Group Limited for the sale of its assets in West Africa. The company aims to divest from its Liberian subsidiary, as well as its operations in Guinea-Bissau and Guinea, as part of a strategic move to streamline operations and focus on core markets.
According to Bloomberg's data, these three countries contributed a mere 1.6% to MTN's revenue in 2022. The decision to divest from these markets is driven by the challenges faced by MTN in recent years, particularly in Guinea-Bissau, due to tough regulatory conditions and a weak economy.
While the deal has not been finalized, MTN's focus will be on consolidating its presence in key markets like Nigeria and South Africa, where it is the largest telecom provider with over 75 million subscribers. The company currently operates in 19 countries across the region and has previously exited Middle Eastern markets.
Axian Group Limited, which recently acquired Millicom International Cellular's Tanzanian operations, has invested in various telecom ventures in Africa, including towers, undersea cables, data centers, financial technology, and phone operators.
Africa's youthful population and growing smartphone market have attracted telecom companies like MTN, allowing them to expand their footprint in the region. Despite challenges such as regulatory hurdles, legal disputes, and competition, MTN remains one of Africa's largest and most successful telecom companies.
MTN's strategy to streamline operations includes a focus on developing digital services such as mobile money and e-commerce platforms, which have helped drive growth and diversify revenue streams.
Recent developments include MTN's listing as one of the most valuable quoted companies in Nigeria during Q1 2023, along with Airtel Nigeria. MTN has also informed shareholders of expected higher earnings per share and headline earnings per share for the current year. Additionally, MTN's partnership with Netflix aims to offer attractive packages to consumers in Zambia.
The potential sale of its West African assets is expected to be welcomed by investors, who have urged MTN to improve its performance. With a strong track record of growth and profitability, MTN remains well-positioned in the African telecom market.
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