Government Initiates AT Debt Restructuring to Save Telecom Provider from Collapse

AT Faces Financial Crisis as Monthly Losses Hit GH₵20 Million

In a critical announcement that could reshape Ghana’s telecommunications landscape, the Minister for Communication, Digital Technology and Innovations, Sam Nartey George, revealed yesterday that the government is launching urgent negotiations with AT’s creditors to prevent the telecom provider’s imminent collapse.

Speaking at a press conference on Wednesday, April 9, 2025, the Ningo-Prampram MP outlined the severity of AT’s financial situation, with debt levels approaching $200 million and monthly operating losses of approximately GH₵20 million.

“The bleeding needs to be trashed, and urgent steps are underway to engage the company’s creditors in negotiating haircuts to ensure the company’s viability,” stated Minister George, addressing journalists in Accra.

Previous Government Criticized for “Ill-Informed” Acquisition

Minister George didn’t mince words when discussing the previous administration’s decision to acquire the telecom company (formerly known as AirtelTigo), characterizing the move as “disingenuous and unpatriotic.”

“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 interests of Ghana,” the Minister asserted.

This criticism comes as the current government attempts to salvage what appears to be a deteriorating financial situation despite previous debt restructuring efforts under the former administration.

Employee Job Security Remains a Priority

Amidst the financial turmoil, Minister George offered reassurance to AT employees concerned about their futures. He emphasized the government’s commitment to protecting jobs while working toward a sustainable solution.

“I will be updating the nation in the course of this quarter on the policy direction the ministry will be taking as the sole shareholder to ensure the security of the jobs of employees and the long-term survival of the business,” he promised.

What This Means for Ghana’s Telecom Sector

The AT crisis represents a significant challenge for Ghana’s telecommunications industry, which has seen substantial growth in recent years. Industry experts suggest that maintaining healthy competition in the market is essential for consumer benefit and continued digital innovation.

According to the Ghana Chamber of Telecommunications, the sector contributes approximately 6% to Ghana’s GDP and employs thousands directly and indirectly. A collapse of AT would potentially reduce market competition and affect service delivery to millions of Ghanaians who rely on mobile communication for business and personal needs.

The government’s intervention comes at a time when digital connectivity has become increasingly vital for economic development and financial inclusion across Africa. The World Bank’s Digital Economy for Africa initiative highlights how critical telecommunications infrastructure is for emerging economies.

Looking Forward: Next Steps for AT Recovery

As negotiations with creditors commence, telecommunications industry analysts will be watching closely to see if the proposed haircuts and restructuring plans can successfully stabilize AT’s operations.

The Ministry is expected to present a comprehensive recovery strategy that might include:

• Debt restructuring agreements with major international telecommunications creditors
• Operational reorganization to reduce monthly losses
• Potential strategic partnerships to strengthen market position
• Investment in infrastructure modernization to improve service quality

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