• The Ministry of Finance and Budget has shut down the offices of Telecel Central African Republic for failing to pay taxes totaling about $4.4 million. 

• Reports indicate that Telecel has not shown intention to pay the 7% tax on final calls mandated by the government in the 2023 finance law. 

• Since the law took effect in February 2024, Telecel’s outstanding bill has reached 689 million CFA francs ($1,136,835), with unpaid taxes amounting to approximately 2 billion CFA francs ($3,299,958).

There is concern that this situation could affect the quality and availability of Telecel’s services in the Central African Republic if it remains unresolved.

In May 2024, Telecel Central Africa laid the foundation for its new headquarters, a state-of-the-art building in the Central African Republic’s capital, Bangui. At the time, Malek Atrissi, Chairman of the Board of Directors of Telecel Centrafrique, boasted that they were the first operator to launch fibre optics in the CAR and mentioned that the company is starting a new era of innovation and digitalisation in the CAR. The new headquarters was expected to serve as a hub for Telecel’s operations in the region.

In the region, the telco competes with Orange, Moov Africa, and Socatel. 

Aside from the Central African Republic, Telecel operates in Gabon, Equatorial Guinea, the Democratic Republic of the Congo, and Chad, serving over six million active customers. The company acquired two of MTN’s markets in West Africa and Central Africa (WECA) following a sale and purchase agreement in December 2023.

Additionally, Telecel Group secured $20 million from the Africa Credit Opportunities Fund (ACOF) in February 2024 to expand operations in West Africa. Meanwhile, Vodafone Ghana has also rebranded to Telecel Ghana, after the telco acquired it.

However, in another tax issue, Orange was reportedly confronted by the government in April 2024 after the company increased transaction fees on its mobile money platform in response to a new 1% tax.

These competitors strive for market share where the total telecom service revenue was valued at $101.7 million in 2022 and is expected to increase by more than 10% between 2022-2027, per a report.

The report analysed that growth in the market will be fueled by the growing adoption of 3G services, projected growth in the adoption of 4G services, and fixed broadband services, backed by the government’s efforts in fibre network expansion and improved connectivity.