MTN plans investment of $10 billion to increase its market share in Africa

South African telecommunications company MTN Group plans an investment of $10 billion in its network in its various African markets by 2030, at a rate of $2 billion a year.

This commitment, revealed last week by the International Telecommunication Union (ITU), could enable the company to reach new subscribers and strengthen its position on the continent.

‘These funds will be dedicated to expanding and strengthening its voice and data networks, guaranteeing better coverage and connectivity for its customers. MTN Group believes that these investments are essential to foster digital inclusion and economic growth in these strategic markets,’ said the ITU on the page dedicated to the commitments made as part of the Partner2Connect programme.

Sub-Saharan Africa, where the 13 MTN markets targeted by these investments are concentrated, will have 527 million unique mobile subscribers in 2023, for a penetration rate of 44%, according to the Global System Operators Association (GSMA). The organisation also counted 320 million mobile Internet subscribers in the same period, representing 27% of the region’s population. This digital divide presents opportunities for telecoms operators.

In addition to infrastructure, MTN needs to address the barriers that limit the uptake of mobile phone and Internet services by the population. According to the GSMA, one of the main obstacles remains the high cost of smartphones, making them difficult to access. The organisation is encouraging telecoms operators to roll out a range of initiatives, ‘including handset financing schemes, staggered payment plans and smartphones made available through partnerships with manufacturers’.

source: Agence Ecofin