MTN Group has
announced plans to invest $10 billion in its network infrastructure across the
continent by 2030. The South African telecom giant will allocate $2 billion
annually to expand and enhance its voice and data networks, aiming to improve
coverage, connectivity, and digital inclusion in its key markets.
This ambitious
investment, revealed last week by the International Telecommunications Union
(ITU), underscores MTN’s commitment to driving economic growth and bridging the
digital divide in sub-Saharan Africa. With 527 million unique mobile
subscribers and a penetration rate of just 44% in 2023, the region presents
significant opportunities for telecom operators to expand their reach and
impact.
MTN’s $10
billion investment will focus on expanding and strengthening its network
infrastructure, ensuring better coverage and connectivity for its customers. “These
funds will be dedicated to the expansion and strengthening of its voice and
data networks, ensuring better coverage and connectivity for its customers,”
the ITU stated on its Partner2Connect commitments page.
The investment
aligns with MTN’s mission to foster digital inclusion and economic growth
across Africa. By improving access to reliable voice and data services, MTN
aims to empower individuals, businesses, and communities, enabling them to
participate fully in the digital economy.
Sub-Saharan
Africa remains one of the most underserved regions in terms of mobile and
internet connectivity. According to the Global Mobile Phone Association (GSMA),
the region had 320 million mobile internet subscribers in 2023, representing
just 27% of the population. This digital divide highlights the urgent need for
investment in network infrastructure and affordable digital solutions.
The GSMA
predicts that the number of unique mobile subscribers in sub-Saharan Africa
will grow to 751 million by 2030, with a compound annual growth rate of 4.5%
between 2023 and 2030. Mobile internet penetration is expected to reach 37%,
with 518 million users. However, achieving these targets will require
significant investment, with the GSMA estimating that operators in the region
will need to spend $62 billion on their networks over the same period.
MTN’s
investment comes as competition in Africa’s telecom sector intensifies. With
approximately 230 million subscribers, MTN currently holds the title of
“Africa’s largest mobile network operator.” However, it faces stiff competition
from Vodacom (205 million subscribers), Airtel Africa (163.1 million
subscribers), and Orange (160 million subscribers).
By expanding
its network and reaching new subscribers, MTN aims to consolidate its market
leadership and strengthen its position in the region. The company’s investment
in infrastructure will not only enhance its service offerings but also enable
it to tap into underserved markets, particularly in rural and remote
areas.
While
infrastructure investment is critical, MTN must also address the barriers that
limit the adoption of mobile and internet services in Africa. One of the most
significant challenges is the high cost of smartphones, which remains out of
reach for many consumers.
By: Nana Appiah Acquaye
