Just In : MTN To Leave The Following African Countries With Strong Reasons (FULL LIST)
Telecommunication giant MTN is contemplating withdrawing from three African countries, citing factors such as declining revenue.
The potential exit from Guinea-Bissau, Guinea-Conakry, and Liberia is part of the company’s strategic considerations, as reported by Business Insider Africa.
MTN, currently present in 19 countries across Africa and the Middle East, is engaged in discussions regarding an “orderly exit” from these three countries. The move is expected to reduce the company’s operating countries in the West and Central Africa segment of its portfolio to five.
While the specific reasons for the exit have not been disclosed, MTN’s financial reports highlight challenges faced in the West and Central Africa region. CEO Ralph Mupita pointed to inflation and currency devaluation in several markets as contributing factors.
In the 2022 financial year, MTN reported a decline in its EBITDA margin by 1.7 percentage points to 33.1%, attributed to pricing pressures, fintech channel subsidies, and macroeconomic challenges, including local currency devaluations and higher inflation.
Although these three countries represent only 1.6% of MTN’s total revenue in 2022, according to Bloomberg, they are not major contributors. MTN holds a secondary market share, accounting for about 30% in Guinea-Bissau and Guinea-Conakry, while in Liberia, Lonestar MTN is the second-largest telecom in the country.
