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MTN stated on Thursday that it had finally quit the unstable Yemen market after selling its controlling stake to a minority shareholder.
The move is part of a plan to quit the Middle East in favor of African markets, which was announced in August 2020. Yemen has been engulfed in turmoil since a ten-year rebellion against the government, which sparked a civil war.
MTN Yemen’s majority stake was transferred to Emerald International Investment LCC on November 17th, according to the telecoms company.
MTN Yemen’s Emerald is a subsidiary of a firm linked to a minority stakeholder. “The decision to exit Yemen was driven by a need to simplify the portfolio and focus our limited resources on executing a Pan- African strategy,” said MTN Chief Executive Ralph Mupita.
MTN Yemen’s operating licence for its 2G network is up for renewal at the end of 2021, and MTN owns 82.8 percent of the company.
The corporation also intends to abandon the war-torn regions of Syria and Afghanistan. Yemen was part of the group’s Middle Eastern operations, despite its geographical location in Africa.
The business had been plagued by underperformance for some years and contributed 0.3 percent of MTN Group EBITDA in the first half of 2021.
Story by : Norvisi Mawunyegah