MTN Afghanistan - Afrikan Heroes

MTN Sells Afghan Unit for $35 Million in Exit From Middle East

November 6, 2022

Ralph Mupita, the MTN Group President and Chief Executive

Africa’s largest telecoms company MTN Group is selling its Afghanistan business to Beirut-based M1 New Ventures for US$35-million (R640-million) as Africa’s largest wireless carrier continues to reduce its presence outside the continent.

The Johannesburg-based company announced the deal on Friday alongside its third quarter results. The M1 Group is owned by Lebanon’s Mikati family, who sold Middle East assets to the South African company in 2006, when MTN was seeking to expand in the region.

MTN shares rose as much as 5.2% in early trade in Johannesburg, paring year-to-date losses to 20%.

The wireless carrier has been narrowing focus on its home continent since 2020, targeting high growth areas such as data sales and mobile money. The group abandoned its Syrian business and transferred its Yemen unit to a partner. Operating in Afghanistan, where MTN is the biggest operator with about a 40% market share, has been complicated since the US withdrawal in August 2021. MTN remains present in Iran.

Separately, MTN said it’s advancing talks with strategic investors to buy a stake in its fintech unit. The talks are moving towards a binding-offer stage, and MTN expects outcomes by the first quarter of next year. Customers at the fintech business increased by 23.3% to 63 million in the third quarter from a year earlier, with transaction volumes up by a third to 9.5 billion.

‘Compelling’

“In the near term, revenue growth has been impacted by new taxes in a few markets, but we continue to see the case for structural and compelling growth for fintech services in the medium term that will deepen financial inclusion across Africa,” said MTN CEO Ralph Mupita.

In South Africa, where the carrier recently ended talks to acquire Telkom, the company’s subscribers increased by more than 800 000 to 35.9 million. Group-wide, subscribers rose to 285 million.

MTN said it has repatriated R13-billion from overseas operations so far this year.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

MTN Plans to Sell its Afghanistan Business

September 10, 2021

Africa’s largest telecommunication conglomerate, MTN Group is reportedly in talks with potential international buyers for its wireless business in Afghanistan. This is part of the company’s plans to accelerate its exit from the Middle Eastern country.

Africa’s largest telecom company MTN, currently the market leader in Afghanistan with a 40% share, is in discussions with several parties in ongoing negotiations to sell its Afghanistan arm.

Last year, MTN announced its plans to exit the Middle East over the medium term, allowing the South African company to focus on African markets entirely. Since then MTN has left its operations in Syria, saying that regulatory demands in the country made its operations there untenable.

South Africa’s MTN Group is reportedly in talks with potential international buyers for its wireless business in Afghanistan. This is part of the company’s plans to accelerate its exit from the Middle Eastern country.

Other telecoms operating in Afghanistan, which includes the UAE’s Etisalat, have been reassuring customers and investors that they are keeping services running following the collapse of the US-backed government and installation of the Taliban as the country’s sovereign group last month.

This comes against the backdrop of announcement by the Taliban of a new government, a development analysts say the group filled some of its top posts with individuals in its inner high echelons, including a wanted man on a US terrorism list as interior minister.

The Taliban have been vocal about being a sustainable force in the country, claiming to be committed to any and all international laws, treaties and commitments not in conflict with Islamic law.

“In the future, all matters of governance and life in Afghanistan will be regulated by the laws of the Holy Sharia,” Taliban supreme leader Haibatullah Akhundzada said in a statement, in which he also congratulated Afghans on what he called the country’s liberation from foreign rule.

Now ruling Afghanistan as its sovereigns, the Taliban have vowed to be more patient and tolerant this time around, a commitment many Afghans and foreign powers will be scrutinizing going forward.