MTN Group has officially sold its telecommunications operations in Guinea, making a strategic move to focus on markets with greater potential for growth and profitability. This move, finalized on December 30, 2024, marks the end of MTN Guinea-Conakry’s operations under the multinational’s ownership.
The deal, which saw the State of Guinea take full control of MTN’s assets in the country, aligns with MTN’s ongoing strategy to streamline its operations across Africa. The company intends to focus its efforts and capital on markets where it believes it can achieve sustainable long-term growth, particularly in key West African regions such as Nigeria and Ghana, which remain MTN’s largest markets on the continent.
A Change in Strategy
According to Ralph Mupita, the president and CEO of MTN Group, the sale represents a new chapter for MTN Guinea-Conakry. “This milestone marks a new phase for MTN Guinea-Conakry under local ownership,” Mupita said in a statement. “MTN thanks the staff, customers, regulators, and broader stakeholders in Guinea for the support during the time MTN has been operational in the country.”
The move comes as MTN seeks to reduce its footprint in certain markets where it has struggled with profitability. Guinea is just one of several countries where the telecommunications giant has been scaling down operations, with other exits taking place in regions like the Middle East, including Afghanistan, Yemen, and Syria.
The Guinea Exit: Part of Broader Strategy
MTN’s exit from Guinea is part of a broader restructuring plan that began taking shape in May 2023. At that time, MTN revealed that it was in advanced talks to sell some of its West African assets, including its operations in Guinea. While negotiations were ongoing, MTN had acknowledged that such decisions were part of its long-term strategy to focus on more profitable regions.
In August 2024, MTN also completed the sale of its Guinea-Bissau operations to Telecel Group, another indication of its efforts to divest from underperforming markets. Despite these divestments, MTN remains one of the largest telecoms operators in Africa, with a presence in 19 countries.
Revenue Woes and Strategic Shift
MTN’s decision to focus on its most profitable markets comes at a time when the company has been grappling with significant revenue challenges. In 2024, the company reported a sharp decline in service revenue, which fell by 18.5 percent, dropping to 127.37 billion rands in the first nine months of the year.
This decline has prompted the company to narrow its focus, prioritizing markets that offer the best opportunities for growth. Nigeria, Africa’s most populous nation, remains MTN’s crown jewel, alongside Ghana, both of which are integral to the company’s future prospects.
“After reviewing our operations, we determined that scaling back in certain markets will allow us to invest more in high-performing regions, ensuring that we maintain a strong market presence and continue to generate sustainable returns,” Mupita explained in an interview with the press.
Guinea’s Telecom Landscape
MTN’s time in Guinea was marked by efforts to establish a competitive edge in a country where the telecoms sector has long been a battleground for dominance. Guinea, a country with a population of about 13 million, has seen growing demand for mobile and internet services, with several international players seeking to tap into the expanding market. However, MTN’s operations were not immune to the challenges faced by the Guinean telecoms industry, including regulatory hurdles and a competitive market.
The State of Guinea’s acquisition of MTN’s assets marks a shift in the telecoms landscape, as local companies are expected to take a more prominent role in shaping the market’s future. While it remains to be seen how MTN Guinea-Conakry will evolve under local ownership, the move signifies the global trend of multinational companies adapting their strategies to local circumstances.
MTN’s African Expansion Focus
As MTN recalibrates its strategy, Nigeria and Ghana are set to become even more pivotal to the company’s operations. MTN Nigeria, in particular, has been a standout performer, consistently generating high revenue and serving as the backbone of MTN’s African presence. The company’s efforts to boost its services in these regions are expected to include further investments in network expansion and digital innovation.
Additionally, the company has hinted at plans to enhance its presence in emerging sectors such as mobile money and digital services, where there is significant growth potential. MTN has already begun rolling out innovative services in Nigeria, which is anticipated to become a major revenue driver for the company in the coming years.
“We are committed to our markets in Nigeria and Ghana,” Mupita stated. “These markets offer immense opportunities for growth, and we intend to further strengthen our position through targeted investments and strategic partnerships.”
