Ghana Taps KPMG to Advise on Telecom Stakes to End Losses

Ghana has engaged KPMG to advise on its stakes in AT Ghana Ltd. and a Telecel Group unit, aiming to stem significant financial losses and establish a robust second wireless operator. This strategic move follows AT Ghana, formerly AirtelTigo, incurring over $10 million in losses in the first eight months of 2025, years after the government acquired the struggling entity for $1 in 2021.

Analysis

The government of Ghana has appointed KPMG to advise on its telecom investments, specifically its stakes in AT Ghana Ltd. and a unit of Telecel Group, signaling a strategic effort to address persistent financial underperformance and reshape the domestic wireless market. The core issue is the significant unprofitability of AT Ghana, which posted losses exceeding $10 million in the first eight months of 2025. This situation persists years after the government acquired the entity, then known as AirtelTigo, for a nominal $1 from Bharti Airtel and Millicom International Cellular SA (TIGO) in 2021, underscoring the distressed nature of the asset at the time of acquisition. The government's stated goal is to create a second strong operator, implying that the KPMG engagement could lead to a merger, sale, or significant restructuring of these state-held assets. For Millicom (TIGO), this development is a historical footnote with no direct financial impact, as its exposure to the struggling entity was concluded with the 2021 sale.

Key Decisions for Investors

• Investors in Millicom International Cellular (TIGO) should consider this news a non-event, as the company fully divested from the underperforming Ghanaian asset in 2021, insulating it from the current operational losses.
• Investors focused on the African telecom sector should monitor for potential M&A activity in Ghana, as the government's engagement with KPMG could precede a consolidation or restructuring aimed at creating a stronger competitor in the market.
• The ongoing losses of the state-owned operator serve as a reminder of the heightened operational and execution risks associated with government-controlled assets in emerging markets, warranting careful due diligence for those considering similar investments.