MTN Group commits $2bn for Africa’s network infrastructure yearly

MTN Group is investing $2 billion each year to upgrade its network infrastructure as part of a long-term strategy to transition from 3G to 5G and expand digital connectivity across Africa, according to Group President and CEO Ralph Mupita

Speaking in an interview with Bloomberg over the weekend, Mupita said the recurring capital expenditure is being used to refresh existing networks, increase capacity, and bring connectivity to underserved communities.

“We’ve been able to buy more with that envelope,” he noted, highlighting that falling tech costs and smart procurement practices have helped MTN stretch the $2 billion budget further.

With an average revenue per user ranging between $2 and $3, and occasionally reaching $5, Mupita emphasized that the investment is designed to serve both immediate needs and long-term goals.

Nigeria Leads in Network Expansion Amid Cost Challenges
In Nigeria, MTN’s largest market with over 80 million subscribers, capital expenditure spiked 168.3% in 2024, hitting ₦1.53 trillion, according to the company’s latest financial report. However, most of this increase was attributed to tower lease renegotiations.

Excluding lease-related spending, MTN’s actual investment in fibre rollout, base stations, and other tech infrastructure saw a slight dip to ₦443.5 billion, down from ₦449.3 billion in 2023.

Maintaining Neutrality Amid Geopolitical Tensions
On the global tech stage, Mupita sidestepped alignment with the U.S.-China tech rivalry, calling both parties “two big elephants” that MTN prefers to avoid.

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“We try to be neutral,” he stated, reflecting a broader sentiment among African firms cautious of being caught in geopolitical crossfire.

Africa’s Slow but Steady Embrace of AI
Addressing the potential of artificial intelligence (AI), Mupita acknowledged that while AI’s full benefits for Africa may still be on the horizon, progress is underway.

He pointed out that African languages are gradually being incorporated into AI models, a trend he likened to the continent’s adoption of smartphones—slow at first, but followed by rapid growth.

A Strategic Commitment, Not a Luxury
With MTN operating across 17 countries and serving over 280 million users, Mupita reiterated that the $2 billion annual investment is not a luxury but a strategic necessity.

“The goal is to build Africa’s digital future, one step at a time,” he concluded.