MTN Exits Jumia, Sells its 18.9% Stake For $142.32 million

As part of its ongoing efforts to streamline its portfolio and minimise debt by disposing of its non-core businesses, South African telecommunications giant, MTN Group has announced the sale of its stake in Jumia, one of Africa’s largest eCommerce firms.

MTN says it got $142.32 million from the sales of the shares. The company also fetched R204 million from the localisation of its 8% shareholding in MTN Zambia.

Jumia, which is listed in New York, operates in 14 African countries and is considered a market leader in e-commerce, with a market capitalisation of $1.3 billion.

The company said in August it would begin its exit out of the Middle East by selling its 75% stake in Syria to Romanian technology investment company TeleInvest, in a process which would take between three to five years.

The offloading of a stake in Iran’s ride-hailing app Snapp is also being considered.

In an operational update, MTN said its growth in the third quarter was supported by the strong performance of its operations in South Africa, Nigeria, and Ghana, which saw it add 12 million subscribers to hit 273 million users across its 21 markets.

Service revenue during the quarter increased by 11.4% to more than R43 billion, as Covid-19 restrictions drove demand for data usage.

“We have now increased our full year forecast for capital expenditure to R26 billion, to ensure that our networks provide reliable connectivity and digital services to all of our 273 million-and-growing subscriber base,” said Ralph Mupita, chief executive officer.

The group also reported growth of 21% in fintech revenue and 37.5% in digital revenue, driven by the increased adoption and usage of digital offerings.