MTN to Sell off $243m Stake in Jumia

South Africa-based telecoms giant, MTN Group is reportedly planning to sell, in part or all, of its $243 million interest in Jumia Technologies, Africa’s biggest eCommerce company.

Bloomberg, citing inside sources, said MTN intends to use part of the money for debt settlement and the rest to enter new markets.

The potential sale move comes after Jumia’s shares surged 142% this year, which signifies a rise from its drastic plunge in 2019.

Jumia had dropped its initial public offering price in 2019 after alleged corrupt activities emanated from its business in Nigeria.

MTN had previously indicated that Jumia is not an integral part of its business, noting it could sell it off as part of its 1 billion three-year asset-disposal plan.

Details are still sketchy about the sale as anonymous sources said MTN is keeping the information private until talks are finalised.

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As at the time of filing this report, MTN Nigeria was yet to respond to a request for comment sent by Business Elites Africa (BEA).

The telecoms giant has been selling all its non-core assets as part of the company’s strategy to reduce debt and drive future growth.

It was gathered that the company also has a 29% stake in IHS Towers, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East by tower count.

Sources say the company may also sell the stake in the future. MTN has generated 14 billion rand ($812 million) in asset sales that included selling its towers holdings in Ghana and Uganda to American Towers Inc.

BEA learnt that MTN also plans to bid for a license to enter Ethiopia, one of the largest markets that have not yet privatized its telecommunications industry,