MTN Group, Africa’s largest mobile operator, is reportedly in advanced talks with Axian Group to sell some of its West African markets. MTN’s assets in Liberia, Guinea-Bissau, and Guinea-Conakry would be divested as part of the potential deal. According to insiders, the two companies are negotiating prices for the assets, but no agreement has been reached. MTN has not commented on the talks, and Axian has not yet issued a statement.
According to Bloomberg data, the three countries will account for only 1.6% of MTN’s revenue in 2022. The potential divestiture is part of MTN CEO Ralph Mupita’s efforts to trim the company’s portfolio and focus on its core markets. MTN operates in 19 countries across the region, and it has already exited certain Middle Eastern businesses, including Afghanistan, Yemen, and Syria.
The sale of some West African assets is consistent with MTN’s overall strategy of streamlining its operations and resources. MTN’s largest West African assets, Nigeria and Ghana, are being targeted as core markets. Meanwhile, it is exiting smaller markets in order to simplify its portfolio and prioritise its resources. MTN is also focusing on network investments in its core markets in order to improve the quality of its services and expand its customer base.
The potential deal with Axian comes amid increased interest in African telecom deals. Africa has a young population and a burgeoning smartphone market, making it an appealing market for companies looking for telecom opportunities. Axian acquired Millicom International Cellular’s Tanzanian operations in 2022. In countries such as Madagascar and Senegal, the company’s telecommunications unit has invested in towers, undersea cables, data centres, financial technology, and a number of phone operators.
As its parent company, Vodafone Group Plc, considered options for the business, South Africa’s Vodacom Group Ltd. drew interest from Emirates Telecommunications Group Co. Furthermore, earlier this year, Telecel Group, led by French tycoon Hugues Mulliez, acquired Vodafone’s operations in Ghana.
Finally, MTN’s potential sale of its West African assets to Axian Group is part of the company’s strategy to concentrate on its core markets and streamline its operations. The transaction also reflects a growing interest in African telecom opportunities, as the continent’s young population and expanding smartphone market entice telecom players from around the world.
