The government has unveiled the alarming financial challenges confronting state-owned telecom operator AirtelTigo, revealing a staggering debt of over $200 million. The company is also incurring monthly losses of approximately GH₵20 million, placing its sustainability at risk.
Addressing journalists in Accra on Wednesday, April 9, 2025, the Minister for Communications, Digital Technology, and Innovations, Samuel Nartey George, expressed sharp criticism of the decision by the previous administration to acquire AirtelTigo for a mere $1. He described the acquisition as “reckless, ill-informed, and unpatriotic,” highlighting the poor state of the company and the burdensome debt inherited.
“A Failing and Obsolete Acquisition”
The telecom operator, acquired by the Akufo-Addo administration in 2020 for the symbolic price of $1, came with a massive $400 million debt. While the current government has managed to restructure this debt to $200 million, the company remains in dire financial straits.
Mr. George slammed the lack of due diligence preceding the acquisition, pointing out that AirtelTigo was already in a “failing and obsolete” condition at the time of purchase.
“The network’s core billing and operational systems have not been upgraded in over five years,” he disclosed. “This has rendered them ineffective, compounding the company’s inability to compete in a dynamic telecom market.”
Mounting Losses and Strategic Interventions
AirtelTigo’s revenue, Mr. George noted, falls significantly short of its operational costs. With losses averaging GH₵20 million monthly, the company is in desperate need of revitalization to ensure its survival and protect the jobs of its workforce.
The ministry is reportedly in advanced discussions with creditors to negotiate further debt reductions and explore strategies to keep the company afloat. “We are committed to charting a sustainable path for AirtelTigo while preserving the jobs of its employees,” Mr. George assured.
Future Outlook
A new policy direction is expected to be unveiled in the coming weeks. This strategy aims to revamp AirtelTigo’s operations, address inefficiencies, and position the company as a viable player in Ghana’s telecommunications industry.
While details remain scant, industry watchers anticipate a combination of debt restructuring, technological upgrades, and potential strategic partnerships to restore AirtelTigo’s competitiveness.
For now, the focus remains on mitigating losses and charting a path toward recovery, ensuring that the $1 acquisition does not become a $200 million liability for taxpayers.
Story by: Mercy Addai Turkson #ahotoronline.com
