MTN is said to be in talks with buyers for Afghani wireless unit

8th September 2021

By: Bloomberg

  

Font size: - +

MTN Group is in talks with potential international buyers for its wireless business in Afghanistan, a bid to accelerate plans to exit the country, according to people familiar with the matter.

Africa’s biggest mobile-phone operator, the market leader in Afghanistan with a 40% share, is in discussions with several parties, said the people, who asked not be identified as the negotiations are ongoing.

MTN announced just over a year ago a plan to exit countries in the Middle East over the medium term, enabling the Johannesburg-based company to focus on African markets. The carrier has since abandoned its operation in Syria, citing regulatory demands that made operating there untenable, though said last month it’s still evaluating options in Yemen and Afghanistan.

A spokesman declined to comment on market speculation.

Telecom companies operating in Afghanistan, which also includes Etisalat of the United Arab Emirates, have reassured customers and investors they are keeping services running following the collapse of the US-backed government last month, while trying to secure the safety of their employees in the country.

The Taliban unveiled a new government on Tuesday, and have said investments from China will be essential to rebuilding an economy ravaged by 20 years of war. Internet penetration in the country is still low at 22%, while just over a third of the population had mobile-phone connections at the start of the year, according to analysis by DataReportal.

None of the potential bidders are currently from China, the people said.

A writedown of MTN’s Afghanistan business without any proceeds from a disposal would cost about R700-million, the people said. Other operators in the country include State-owned Afghan Wireless and Roshan, a joint venture between Monaco Telecom and a Swiss development agency, as well as Etisalat.

Edited by Bloomberg

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION