- The MTN Group will suspend activities in the Middle East and fully focus on Africa, a new report suggests
- The company cited a number of reasons as grounds for its decision
- The reasons are loss of money on falling regional currencies, volatile geopolitics, and challenges with Western sanctions
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Information available to YEN.com.gh shows that mobile telecommunications company, MTN, has revealed its intent to suspend operations in the Middle East.
The company is set to concentrate its plans on Africa as part of a strategy to simplify its portfolio and leave the Middle East in an organised manner.
YEN.com.gh understands that the company intends to scrap interim dividends under a blueprint in a bid to determine a strategy to combat the coronavirus.
READ ALSO: MTN Ghana records GHc1 billion profit for 2019; total revenue is over GHc5 billion
The outbreak of the pandemic has negatively affected the activities of the company and led to unexpected macroeconomic challenges.
Despite difficulties in trading, the Chief Executive Officer (CEO), Rob Shuter, indicated that there have been great performances from Ghana, Nigeria, and South Africa.
Per a myjoyonline.com report, MTN has operations in Sudan, Syria, and Yemen, as well as Iran and Afghanistan in its Middle East file.
The company intends to sell 75% of its stake in MTN Syria and discussions have reached an advanced stage.
According to Shuter, the company is closing down operations in the region due to profit loss on decreasing regional currencies, volatile geopolitics, and challenges with Western sanctions.
It was alleged that the company entered into the region with the help of bribes to win a 15-year operating license as well as aiding militant groups in Afghanistan.
In other news, MTN Ghana recorded a 62% increase in profit in the First Quarter of the year 2020 with regard to their mobile money operations.
The GHc349 million revenue recorded comes at a time when the company faces macro-economic challenges as well as the effects of COVID-19 on business operations.
The company revealed that the strong performance was a result of cash management initiatives.
READ ALSO: MTN Ghana announces suspension of dividends postpones AGM
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