During its quarterly update call, CEO Ralph Mupita told journalists that the telecoms is engaged in discussions about the potential “orderly exit” of its operations in Liberia, Guinea-Bissau and Guinea-Conakry. 

While the telecom has yet to reveal why it’s leaving these African markets, its financial reports show that it’s facing numerous challenges across the West and Central Africa region. Mupita pointed to signs of inflation and currency devaluation across several markets. 

Small markets, small shares: Per Bloomberg, these three countries also aren’t heavy hitters for the telecoms, contributing a scant 1.6% to MTN’s revenue in 2022. Across these countries, the telecom controls a secondary chunk of the market share, about 30% in Guinea-Bissau and Guinea-Conakry, beaten out by Orange Mobile which controls over 60% of the market share in both countries. In Liberia, Lonestar MTN is the second-largest telecom in the country, with Orange Liberia controlling over 50% of the Liberian telecoms market. 

It’s also not the first time the telecom has hinted at exiting these countries. In May 2023, it was reportedly in talks with Axian Group Limited to sell its assets in these countries. 

Exiting Afghanistan: The telecom is also nearing a close for its exit from the Middle East. 

In 2020, MTN announced its plan to exit the Middle East, focusing on Africa to simplify its structure and reduce risk exposure. This decision was driven by increased complexity due to US sanctions on Iran and growing troubles in Afghanistan. Later, MTN sold its Yemen business and stopped operations in Syria and Afghanistan. In August 2022, the company received a $35 million offer for its Afghanistan business and recently confirmed the sale to M1 New Ventures.

The group, yesterday, announced that its Afghanistan exit will be complete within two months. 

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The MTN ESD programme is open for SMMEs that have been in operation for at least six months, are at least 51% Black-owned, achieve an annual turnover of R500m or less and have daily operations that Black managers in key positions manage.

Charles Molapisi, MTN SA CEO adds, “MTN Xlerator is a symbol of our unwavering commitment to progress, innovation, and empowerment. We believe in the enormous, unearthed potential within South Africa. At MTN, we believe in the evolution of empowerment and our goal is to transition from a transaction-based supply chain to a values-based one, ensuring everyone enjoys the benefits of a connected world while building a better tomorrow.”

Payabill Partnership

Payabill, an SME financing fintech, has been chosen by MTN as one of the finance partners for the programme.

Payabill provides access to funding to South African SMEs. Payabill will feature alongside other selected lenders and banks in MTN’s programme.

The company targets SMEs with annual revenues between R500,000 and R30m, giving them working and other capital to grow their businesses. It offers various forms of finance including local and international trade finance, as well as asset finance.

Explains Eli Michal, Payabill CEO: “We are excited to have been selected by MTN to partner on its Xlerator programme. Payabill has already paid many suppliers in most sectors chosen by its customers all over the country.”

To apply for MTN Xlerator go to www.mtn.co.za/xlerator/.

As Seen on BizCommunity

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