Telecel Group has acquired business units in Guinea-Bissau and Guinea-Conakry from MTN Group, Africa's largest wireless company, as part of its plans for an initial public offering in three years. Telecel's recent acquisition follows its purchase of Vodafone Group's operations in Ghana the previous year.
The Chief Executive Officer of Telecel, Moh Damush, mentioned in an interview with Bloomberg that the company would be acquiring MTN's debt and equity in the two West African countries. The CEO did not disclose the size of the acquisitions. Telecel is considering further acquisitions in the financial services and tech sectors to enhance its investments.
Telecel, along with partners Hugues Mulliez and Nicolas Bourg, took over the company in 2017. They have interests in various markets across Africa like Ghana, Central African Republic, and Liberia. The company aims to raise funds for acquisitions through Africa-focused funds, banks, and equity investors rather than depending solely on financing from shareholders.
MTN has agreed to sell its interests in Guinea-Bissau and Guinea-Conakry to focus on more profitable markets like Ghana, Cameroon, and Cote d'Ivoire. The challenging business environment in 2023, with rising inflation and currency devaluation, led to MTN's decision to exit smaller markets in the West and Central Africa region.
As a result of these changes, MTN is in discussions with regulators, including those in Nigeria, to raise tariffs for voice and data services. This approach is essential for MTN to manage its expense profile, particularly in Nigeria, its largest market in Africa. CEO Ralph Mupita emphasized the need for tariff increases in voice and data services to offset running costs effectively.
In a separate development, MTN has appointed Mike Silber as the Group Executive Regulatory Officer, starting from April 1, 2024. Silber brings over 25 years of experience in the telecommunications sector, having previously worked at Liquid Intelligent Technologies, where he was instrumental in expanding the cross-border fiber network and networked data center operations in Africa.
