Deputy Ranking Member of Parliament’s Communications Committee, Charles Asuako Owiredu, has cast doubt on the government’s proposed merger between AT Ghana and Telecel, warning that it could fail if the underlying financial and structural challenges of the two firms are not resolved.
The Abirem Member of Parliament (MP), speaking on Adom FM’s Dwaso Nsem, explained that Parliament had already been briefed before recess about efforts to secure a strategic partner for AT Ghana due to its persistent losses.
According to him, Communications Minister Sam Nartey George had indicated that negotiations had begun and that further updates would be provided to Parliament.
“The recent announcement is not surprising because we had prior information through our engagements with the NCA and Airtel. But our worry is that the merger does not deal with the fundamental problem. What happens to the huge debt being carried by both entities?” Mr. Owiredu asked.
He stressed that both AT Ghana and Telecel are financially constrained, with neither showing the capacity to inject fresh capital.
“Merging two struggling companies without new investment will only lead to more losses. The debt that has been swallowing them has not been dealt with, so if care is not taken, this merger will return us to square one,” he said.
The comments come at a time when Ghana’s telecom industry remains highly competitive, with MTN controlling more than 65% of the market.
AT Ghana, formerly AirtelTigo, was taken over by the government in 2021 after the exit of multinational shareholders Bharti Airtel and Millicom International.
Despite assurances to restructure and find a new investor, the company has continued to struggle with declining subscribers, mounting debts, and low investment.
Telecel, which acquired Vodafone Ghana in 2023, has also faced hurdles with financing and operational restructuring.
Meanwhile, Communications Minister Sam Nartey George has announced the appointment of KPMG as transaction advisor to oversee the proposed merger.
Source: Gertrude Otchere
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