MTN is seeking to finally exit the Middle East as it focuses its capital and management attention on African markets, chief executive Ralph Mupita said this week.
The South African telecoms group has exited Yemen and Afghanistan and is finalising its departure from Syria, but US sanctions continue to prevent it from divesting from Iran.
Mupita said MTN’s strategy was to leave the Middle East completely.
“Exiting the Middle East has been our strategy. For the last five years, we exited Yemen, exited Afghanistan and have had difficulties with the Syrian authorities for a long while,” Mupita said during a media roundtable briefing this week.
He said the lifting of US sanctions on Syria enabled MTN to approach Syrian authorities earlier this year to settle their disputes and complete its exit. The US revoked its Syria sanctions programme with effect from 1 July 2025, although targeted restrictions remain on specified people and groups.
MTN has reached a settlement with Syrian authorities to regularise its exit from the country. The settlement provides for a payment of $43.9 million (R702m) to MTN in respect of its investment.
Mupita said completing the Syria exit, together with a future departure from Iran, would allow MTN to focus its resources on markets across Africa, where it has deeper operational knowledge.
Mish-Al Emeran, a portfolio manager at Abax Investments, said MTN would become less geographically diversified after leaving the Middle East.
“There will clearly be less geographic diversification, but diversification is only valuable if it improves risk-adjusted returns. Exiting Syria and ultimately Iran simplifies the group and allows MTN to concentrate capital and management attention on African markets where it has scale and strong competitive positions,” Emeran said in an interview on Thursday.
Iran stake remains constrained
MTN held a 49% stake in Irancell since 2005. US sanctions have made it difficult for the group to invest further in the country, repatriate funds or dispose of its shareholding.
Mupita said MTN had recorded an impairment on the carrying value of its Iranian investment. Rising inflation and a weaker Iranian currency contributed to a R3.9 billion impairment related to Irancell, which MTN recognised during its latest reporting period.
The Iranian operation still has a carrying value of about R10.5bn, based on expected cash flows and trapped dividends.
“We can’t put any money in, [and] can’t take any money out. And obviously, in a world where sanctions were lifted, similar to sanctions being lifted in Syria, we would go and complete the exit,” Mupita said.
Emeran said Iran had become increasingly non-core to MTN’s investment case, but continued to pose geopolitical, sanctions and legal risks.
“While its stated intention is ultimately to exit Iran, it cannot do so within legal frameworks whilst the country is under sanctions. The earnings contribution is less relevant today, but the potential downside from geopolitical [and] legal developments, or simply negative sentiment, is a real risk, but hard to quantify,” he said.
Nigeria improves, but risks remain
Mupita said economic fundamentals in Nigeria — where MTN has previously faced regulatory and operational challenges — were improving.
Emeran said Nigeria’s operating environment had improved materially. Foreign-currency liquidity had improved, while the naira had been relatively stable.
However, he cautioned that the risks had not disappeared.
“Recent regulatory intervention around airtime advances and higher energy costs demonstrate how quickly the risk profile can change. Nigeria is a much stronger part of the MTN story today, but investors should be careful about extrapolating current growth rates into perpetuity,” Emeran said.
THE NATIONAL