• Sierra Leone to relaunch Sierratel via MVNO deal with Africell

• Government says move avoids privatization, reduces infrastructure costs

• Sierratel burdened by debt, aging network, and declining market share

Sierra Leone has opted for a mobile virtual network operator (MVNO) model to relaunch state-owned Sierratel, under a 10-year partnership with Africell. Instead of rebuilding its own network, the operator will use Africell’s existing infrastructure.

Communications, Technology and Innovation Minister Salima Bah announced the plan at a press conference on Tuesday, April 21, stressing it should not be seen as privatization but as a strategic repositioning. Previous privatization attempts failed after investors pulled out, citing the high cost of upgrading infrastructure, staff-related liabilities and strong competition in an already saturated market.

Sierratel continues to face significant challenges, including an aging network requiring heavy investment, longstanding human resources issues and a sharp loss of market share to private operators.

The scale of these challenges is substantial. The company owes an estimated $6.3 million in employee-related obligations, while working conditions have deteriorated. It also carries around $35 million in external debt to two banks. Data from the telecoms regulator show its market share had dropped to 1.95% by the end of 2019.

Relaunch Without Building a Network

The MVNO model allows Sierratel to avoid heavy capital expenditure. The company plans to relaunch voice, data and mobile money services in the near term, using Africell’s network, which covers 92.16% of the population for 2G, 77.48% for 3G and 61.72% for 4G, according to the regulator. Africell held a 54.51% market share at the end of December 2024.

Sierratel will keep its brand and leverage its existing recognition. The goal is to improve access to services and boost competition. Its return could widen consumer choice and help lower prices.

The partnership also targets underserved segments, including students and young professionals in the digital and creative sectors, with tailored products. This reflects efforts to better match services with changing usage patterns and the growth of the digital economy.

Bah said the initiative was not aimed at maximizing profits but at ensuring Sierra Leoneans had access to affordable telecommunications services, adding that the partnership would operate on a revenue-sharing basis with Africell.

The move aligns with a broader global trend. According to the GSMA, MVNO models are widely used in mature markets to expand access, diversify services and increase competition. They allow operators to focus on marketing, customer relations and niche services while relying on third-party infrastructure, significantly reducing network costs and enabling more flexible offerings.

Isaac K. Kassouwi