MTN Group’s ambitions to expand network infrastructure and diversify revenue streams are facing fresh challenges, as CEO Ralph Mupita warns that new US tariffs on technology imports could rattle Africa’s telecom sector.
Speaking at the recent Mobile World Congress in Barcelona, Mupita highlighted the potential ripple effects of growing trade tensions, particularly the US’s protectionist moves, which could drive up the cost of telecom equipment and slow down infrastructure rollouts across the continent.
“We are concerned about that,” Mupita said. “We hope there will be constructive dialogue between those two blocs.”
His comments closely follow reports of US tariffs targeting telecom components, many of which are sourced from global supply chains that African telcos heavily rely on.
$2 billion in annual infrastructure spend at risk
MTN, Africa’s largest mobile operator by revenue, operates in 19 countries across Africa and the Middle East. The group spends around $2 billion each year on network infrastructure, a budget that supports everything from mobile internet expansion in underserved areas to 5G deployment in urban hubs. However, that capital expenditure could come under pressure if equipment prices rise, especially as operators already navigate inflation, regulatory hurdles, and currency instability.
Speaking at a media event in Johannesburg, Mupita pointed out how rising costs for radio equipment, driven by sustained tariffs, could strain telecom operators far beyond Africa. “We anticipate that global growth will slow, and the tariffs, especially if they are sustained over a long period, will keep inflation more elevated than it would otherwise have been,” he said.
Inflation and supply chain delays could derail rollouts
Inflationary pressure could raise the cost of building and maintaining mobile networks, forcing telcos to rethink pricing strategies or delay much-needed infrastructure upgrades. MTN, for instance, has earmarked another $2 billion for network investment in its 2025 financial year. However, executing that spend requires detailed planning and early procurement to avoid supply chain shocks.
For now, Mupita believes MTN will be “largely shielded” from near-term disruptions, with most of its 2025 equipment deals already finalised. That’s partly because the group sources much of its network gear from Chinese vendors like Huawei, whose products are often cheaper than those offered by rivals such as Sweden’s Ericsson. Cost is a critical factor for MTN, given its average revenue per user across Africa hovers around $5, far below the $60-plus seen by European operators.
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A high-stakes pivot to video streaming
Still, mounting trade friction adds another layer of uncertainty for a company already grappling with profitability concerns. Over the past two years, MTN has reported combined post-tax losses totalling $398 million. In response, the group has begun exploring new revenue streams, including a fresh push into video streaming.
On April 7, MTN announced a partnership with global video software provider Synamedia to launch a streaming platform aimed at mobile and broadband users across Africa. The goal is to improve digital inclusion and expand access to entertainment and educational content. But the move also represents a high-stakes gamble in a crowded and capital-intensive industry.
