South Africa’s MTN Group has formalised an agreement with the Syrian Arab Republic to regularise its exit from the country, nearly five years after announcing its decision to abandon the operation.
The agreement was concluded after a meeting between Ralph Mupita, MTN Group President and CEO, and Abdulsalam Haykal, Syrian Minister of Communications and Information Technology, on the sidelines of the Mobile World Congress underway in Barcelona, Spain.
In a media statement issued today to Technology Times, MTN said the two parties had “formalised an agreement to regularise MTN’s exit from Syria,” with the intention that both sides implement the agreement imminently.
MTN Syria: Regulatory tensions forced 2021 exit decision
MTN announced in August 2021 that it would abandon its Syrian operation, citing regulatory actions and demands that made continued operations untenable.
In its H1 2021 trading results announcement at the time, the MTN Group stated: “We announced our decision to abandon the MTN operation in Syria given regulatory actions and demands that make operating in that country untenable. We reserve our rights to seek redress through international legal processes given the actions of the Syrian authorities that have left us with no other choice than to exit. MTN Syria represented less than 1% of MTN Group EBITDA at the end of 2020. In line with our focus on Africa, we continue to explore options to exit Yemen and Afghanistan in an orderly manner.”
MTN’s exit from Syria formed part of a broader portfolio rationalisation strategy announced in 2020, under which the Group committed to withdrawing from its Middle East operations to concentrate capital and management focus on Africa.
The 2021 disclosure underscored both the limited financial contribution of the Syrian unit to the Group and the material regulatory strain that precipitated the withdrawal.
Part of broader Middle East exit strategy
MTN’s exit from Syria formed part of a broader portfolio rationalisation strategy announced in 2020, under which the Group committed to withdrawing from its Middle East operations to concentrate capital and management focus on Africa.
The telecoms company finalised its exit from Yemen in 2021 and completed its withdrawal from Afghanistan in 2024.
However, MTN’s divestment from Iran remains unresolved. The group says it continues to seek an exit from its 49% investment in the country, though this has been complicated by United States sanctions.
MTN strategic refocus on Africa
Launched in 1994, MTN Group, owners of MTN Nigeria, is a leading digital operator listed on the JSE Securities Exchange. Under its Ambition 2025 strategy, the company aims to position itself as a leading provider of digital solutions for Africa’s progress.
The formalisation of the Syria exit agreement marks another step in MTN’s strategic repositioning and resolution of legacy exposures tied to its former Middle East portfolio. Further details on implementation timelines were not disclosed.
Home
