Telecommunications giant MTN is reportedly planning to sell its assets in some of its West African markets in Liberia, Guinea-Bissau, and Guinea, as it plans to streamline operations.
The telecom giant is currently in advanced talks with Axian group limited, a pan-African group that specializes in real estate, telecom, financial services, etc, to sell some of its assets, as negotiations are currently ongoing.
The potential deal with Axian is coming amid increased interest in African telecom deals. However, reports reveal that the deal has not been finalized, also, there is no guarantee that the transaction will go ahead.
According to sources, the three West African countries accounted for 1.6% of MTN’s revenue in 2022, as the telecom giant plans to narrow its focus and resources on its core markets which include Ghana, South Africa, and Nigeria.
Despite the challenges that have ravaged several African companies, MTN remains focused on optimizing its portfolio and evaluating its assets in the markets where it currently operates. MTN group president and CEO Ralph Mupita disclosed that the company has been evaluating its portfolio in recent months.
Investors King understands that MTN’s sale of assets in some of its West African markets indicates a broader trend in the market, which has seen companies evaluate their portfolios and focus on its core markets amid challenging business conditions.
In Guinea-Bissau, MTN has struggled to generate significant profit due to tough regulatory conditions and a weak economy. Despite the challenges it has faced in some of its markets, it remains one of the largest and most successful telecommunications companies in Africa. The company has a good track record of growth and profitability, and it has demonstrated an ability to adapt to changing market conditions.
As part of its strategy to streamline its operations, MTN has also been focusing on developing its digital services. The company has launched a number of innovative products and services in recent years, including mobile money and e-commerce platforms.