MTN Sets Sights on East Africa for Expansion
MTN Group, a telecommunications giant with a strong presence across Africa, is strategically shifting its focus towards East Africa for future growth. CEO Ralph Mupita has indicated the company's ambition to strengthen its foothold in the region over the next three to five years.
Currently, MTN's operations are heavily concentrated in West and Southern Africa, with powerhouses like Nigeria, Ghana, and South Africa driving the company's recent financial success. While MTN has established businesses in Uganda, Rwanda, and Zambia, its presence in key East African markets like Kenya, Tanzania, Mozambique, and Ethiopia remains limited.
Why East Africa?
Mupita highlighted East Africa's appeal, citing its “high-quality growth with a relatively lower risk profile” compared to certain West African markets. This strategic move aims to address the existing imbalance in MTN's geographic footprint.
MTN currently operates in 16 markets across Africa and the Middle East, serving over 300 million subscribers. However, a significant portion of its revenue is generated from a handful of key countries. South Africa remains the home market and strategic anchor, while Nigeria stands out as the largest operation in terms of subscribers and service revenue. Ghana, Côte d’Ivoire, Cameroon, and other West & Central African markets contribute significantly to the company's West African cluster.
Kenya: The Missing Piece?
While Mupita didn't explicitly outline MTN's expansion strategy, he specifically mentioned Kenya as a “missing” market in the company's portfolio, suggesting a potential interest in establishing a presence in the country. The details of how MTN plans to expand in East Africa, whether through acquisitions or organic growth, remain to be seen.
This renewed focus on East Africa signals MTN's commitment to long-term growth and its ambition to solidify its position as a leading telecommunications provider across the continent.