MTN may relinquish stake in Jumia Technologies

MTN Group Limited may sell part or all of its $243 million interest in Jumia Technologies AG as Africa’s biggest wireless carrier looks to pay down debt and enter new markets.

MTN, which had previously marked the online retailer as a non-core business, is reviving plans for a sale after Jumia’s shares surged 142percent this year, recovering from a dip in 2019, Bloomberg reports people familiar with the matter to have said.

No final decisions about the sale have been made, the people said, asking not to be identified because the plans are private.

Johannesburg-based MTN has been disposing of non-core assets as part of the company’s strategy to reduce debt and drive future growth.

Called Africa’s Amazon, Jumia operates in 14 African countries including Nigeria and Ivory Coast where the U.S. giant still lacks distribution infrastructure. The company — headquartered in Germany and run by its two French founders, Sacha Poignonnec and Jeremy Hodara — had dropped below its initial public offering price in 2019 after improper transactions in its Nigerian business were uncovered.

The company also has a 29percent stake in IHS Towers, which it may sell in the future, one of the people said. Africa’s largest wireless carrier by footprint has generated 14 billion rands ($812 million) in asset sales that included selling its towers holdings in Ghana and Uganda to American Towers Inc. The company plans include bidding for a license to enter Ethiopia, one of the largest markets that have not yet privatized its telecommunications industry.

MTN Nigeria begins trial for eSIM — first in West Africa

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.