The largest African wireless company, MTN Group, has sold two of its units to Telecel Group, a telecommunication company that acquired Vodafone Group’s operations in Ghana last year.
Telecel Group is an Africa-focused telecommunications company that acquired MTN’s debt and equity in Guinea-Bissau and Guinea-Conakry. Moh Damush, the Chief executive in an interview, has refused to disclose the size of its acquisition.
In February 2024, Telecel Global Services raised $20 million from the Africa Credit Opportunities Fund (ACOF) to expand its services in West Africa. The CEO of Telecel group, Damush, mentioned that, the company looks forward to acquiring tech companies and financial services to add value to its investment.
Since the acquisition of Telecel by Damush and partners Hugues Mulliez and Nicolas Bourg in 2017, the firm has picked interest in several markets, such as Ghana, Central Africa Republic, and Liberia, with more financial support from shareholders.
The acquisition of any of the above markets will result to fundraising from Africa-focused funds, banks, and equity investors. Damush also listed Dubai and London as preferred options toregarding the firm’s expansion and development in years to come.
MTN Agrees to the Acquisition
One of the largest African communication companies, MTN, agrees to sell off its equity interests in MTN Guinea-Bissau and Guinea-Conaans to exit smaller markets in the West and Central Africa (WECA) region.
MTN’s Guinea-Bissau and Guinea-Conakry businesses have been opened for sale as of December 31, 2023. From the sale, MTN aims to focus on stronger markets in the West and Central Africa region, such as Ghana, Cameroon, and Cote d’Ivoire.
On Monday, 1 March 2024, the CEO of MTN Groups, Ralph Mupita, stated that the company is in contact with regulators across several markets, including Nigeria, to get approval to increase tariffs for voice and data.
He further said, “Given our expense profile in Nigeria, we need some tariff increases to mitigate the cost of running the networks. Our focus is to work with regulators for tariff increases in voice and data as there haven’t been any increases for quite some time in that market,”
