What's Happening?
The Ghanaian government has engaged KPMG to assist in merging AT Ghana and Telecel, aiming to mitigate financial losses and create a stronger competitor against MTN Ghana. AT Ghana has been financially struggling since its acquisition from Bharti Airtel and Millicom for US$1 in 2021, with losses reaching US$10 million in the first eight months of 2025. Telecel Ghana, partially owned by the government, is also underperforming. MTN Ghana dominates the market with 73.8% share, serving nearly 29.8 million subscribers, while the combined AT-Telecel entity would have around 10.5 million subscribers.
Why It's Important?
The merger between AT Ghana and Telecel is crucial for the Ghanaian telecom industry, as it seeks to challenge MTN Ghana's market dominance. By consolidating resources and subscriber bases, the merged entity could potentially offer more competitive services and pricing, benefiting consumers. The government's involvement underscores the importance of stabilizing the telecom sector, which is vital for economic growth and digital infrastructure development in Ghana.
What's Next?
The merger process will likely involve strategic planning and negotiations facilitated by KPMG. The outcome could lead to increased competition in the telecom market, potentially driving innovation and improved service delivery. Stakeholders, including consumers and rival companies, will be closely monitoring the merger's progress and its impact on the market dynamics.
