Samuel Nartey George, the Minister of Communication, Digital Technology, and Innovation, has announced that AT’s debt portfolio currently amounts to $200 million due to a debt restructuring arrangement. He indicated that the company is still grappling with financial difficulties, facing monthly operating losses of GHS 20 million.
During a press conference in Accra on Wednesday, April 9, George underscored the urgency of the situation, stating that efforts are underway to negotiate debt reductions with creditors to secure AT’s viability. The Minister also criticized the previous government’s acquisition of Airtel Tigo, which was rebranded as AT, alleging that it was purchased for an unreasonably low price of $1.
He described the decision as “ill-informed and reckless,” highlighting that the company had a debt portfolio of $400 million at the time of purchase and lacked sufficient revenue to cover its overhead costs. Sam George also pointed out that the core and dealing platforms had reached the end of their lifecycle, with no significant investments made by the former operators of Tigo, in the preceding five years.
“The previous government acquired Airtel Tigo and rebranded it as AT with a reported purchase of $1. Nothing could have been more disingenuous and unpatriotic. When the company was bought its debt portfolio stood at $400million and its revenues could not meet its monthly overheads.
“The core and dealing platforms have reached the end of life and both Bharti and milicom which operated Tigo had failed to make any meaningful investments in both companies over the preceding five years. The decision to step in at the time can best be described as ill informed and reckless.
It was an abdication of responsibility by the then administration and minister to the best interest of Ghana.” “…Today after a debt restructuring arrangement, the debt portfolio at AT sits at about $200million, rising every month as the company makes a monthly operating loss of GHS20million. “The bleeding needs to be thrashed and urgent steps are underway to engage the companies creditors in negotiating haircuts to ensure the company’s viability,” Sam George stated.
By: Abigail Arthur
