(3 minutes read)
· Africa’s largest mobile operator, and South African telecom giant MTN, announced its withdrawal from the Middle East operations to concentrate on its pan-African strategy
· The company is reportedly planning to sell its 75% stake in MTN Syria. Iran operations are also facing difficulties due to the US sanctions on that country.
· The South African company’s entry into the Middle East has been marred by allegations
Africa’s largest mobile operator, and South African telecom giant MTN, announced its withdrawal from the Middle East operations to concentrate on its pan-African strategy. Yesterday, ww.trendsnafrica.com reported about MTN selling its stake in Jumia AG, the German retail company to realize funds for retiring its debt and to focus on the telecom sector. MTN also has pulled out of some of the established markets in Africa to realize funds for its restructuring programs.
MTN founded in 1994, lists operations in Sudan, Syria, Yemen and – as well as Iran and Afghanistan in its Middle East file. The company is reportedly planning to sell its 75% stake in MTN Syria. Iran operations are also facing difficulties due to the US sanctions on that country. The South African company’s entry into the Middle East has been marred by allegations. The allegation was that it used bribes to win a 15-year operating license in Iran and also that it aided militant groups in Afghanistan. MTN denied involvement in such deals. The asset base of MTN in the Middle East is negligible, constituting only 4% of its total exposure.
