MTN Transfers Guinea Operations to Local Government Ownership
MTN Group, Africa’s largest network operator by subscriber base, has successfully completed the sale of its operations in Guinea (MTN Guinea-Conakry) to the State of Guinea. The transaction, finalized on December 30, 2024, supports MTN’s portfolio optimization and simplification strategy, which aligns with its Ambition 2025 goals.
Key Highlights:
• Strategic Move: MTN Group President and CEO Ralph Mupita highlighted that the sale allows MTN to focus on markets where it can drive growth and long-term returns. He expressed gratitude to MTN Guinea-Conakry’s staff, customers, and stakeholders for their support during the operator’s time in the country.
• Portfolio Adjustment: The deal reflects MTN’s intent to streamline operations and allocate resources to higher-priority markets.
• Background: The decision to exit Guinea was disclosed in 2023, with MTN classifying its Guinea-Conakry and Guinea-Bissau businesses as held for sale.
Why Exit Smaller Markets?
During a media briefing in Johannesburg in August 2024, Mupita explained that certain markets were challenging under MTN’s risk management framework. “They are subscale and not able to fund their growth,” he said, emphasizing that local operators might better serve such markets.
Future Prospects
MTN’s exit paves the way for local stakeholders to drive growth and technological progress in Guinea. Similarly, MTN previously accepted an offer from Telecel, a telecom operator with a strong African presence, to acquire its equity interests in Guinea-Bissau and Guinea-Conakry.
This move underscores MTN’s commitment to recalibrating its portfolio to enhance operational efficiency and focus on scalable opportunities.
MTN Group, Africa’s largest network operator by subscriber base, has successfully completed the sale of its operations in Guinea (MTN Guinea-Conakry) to the State of Guinea. The transaction, finalized on December 30, 2024, supports MTN’s portfolio optimization and simplification strategy, which aligns with its Ambition 2025 goals.
Key Highlights:
• Strategic Move: MTN Group President and CEO Ralph Mupita highlighted that the sale allows MTN to focus on markets where it can drive growth and long-term returns. He expressed gratitude to MTN Guinea-Conakry’s staff, customers, and stakeholders for their support during the operator’s time in the country.
• Portfolio Adjustment: The deal reflects MTN’s intent to streamline operations and allocate resources to higher-priority markets.
• Background: The decision to exit Guinea was disclosed in 2023, with MTN classifying its Guinea-Conakry and Guinea-Bissau businesses as held for sale.
Why Exit Smaller Markets?
During a media briefing in Johannesburg in August 2024, Mupita explained that certain markets were challenging under MTN’s risk management framework. “They are subscale and not able to fund their growth,” he said, emphasizing that local operators might better serve such markets.
Future Prospects
MTN’s exit paves the way for local stakeholders to drive growth and technological progress in Guinea. Similarly, MTN previously accepted an offer from Telecel, a telecom operator with a strong African presence, to acquire its equity interests in Guinea-Bissau and Guinea-Conakry.
This move underscores MTN’s commitment to recalibrating its portfolio to enhance operational efficiency and focus on scalable opportunities.