MTN’s FY2024 in Conversation: Ralph Mupita on Recovery, Resilience, and Regional Growth
MTN Group, Africa’s largest mobile network operator, recently hosted an exclusive editorial roundtable with select media, including TechAfrica News, to unpack its evolving strategy and vision for the continent’s digital future.
This high-level session brought together the Group’s top leadership, offering rare, in-depth insights into MTN’s transformation journey. No longer just a traditional telecom operator, the company is positioning itself as a purpose-driven, platform-based technology powerhouse. President and Group CEO, Ralph Mupita, alongside his executive team, laid out the roadmap for navigating the complex landscape of challenges and opportunities that define Africa today.
With a footprint spanning 19 countries and a subscriber base exceeding 290 million, MTN’s scale places it at the forefront of Africa’s digital revolution. This reach, however, also carries an immense responsibility—to foster inclusion, empower businesses, and build the essential digital infrastructure for the continent’s next growth chapter. Central to the conversation was MTN’s bold vision: a future that is more connected, more inclusive, and increasingly powered by technology.
A Tale of Two Halves: MTN’s Financial Performance
Turning to financial performance, Mupita described the year as a “tale of two halves.” The first half, he acknowledged, was overshadowed by severe macroeconomic headwinds, including volatile currency fluctuations that weighed heavily on operations across several key markets. Yet, despite these external pressures, the second half of the year marked a notable rebound, with improvements recorded across crucial performance indicators.
“The underlying operating performance was actually very strong,” Mupita affirmed, highlighting the resilience embedded in MTN’s diversified portfolio and operational agility. He pointed to the Group’s ability to adapt swiftly to changing market conditions, maintaining momentum even in the face of economic adversity.This resilience not only reflects MTN’s robust internal structures but also signals its readiness to lead Africa’s digital charge.
Ambition 2025: Guiding MTN’s Strategic Trajectory
At the heart of MTN Group’s long-term vision is Ambition 2025, a strategic framework that Mupita is confident will continue to guide the company toward its goals. This roadmap is centered on tapping into Africa’s growing data consumption and the continent’s increasing financial inclusion, both of which present immense growth potential for MTN.
Mupita highlighted several key pillars that underpin this ambitious vision, each playing a crucial role in shaping the company’s future trajectory.
- Portfolio Optimization: Refining MTN’s Operational Footprint
As part of its strategic direction, MTN is actively reshaping its portfolio by exiting markets where it faces excessive risks or where it doesn’t see itself as the ideal operator. Countries such as Afghanistan, Guinea Conakry, and Guinea Bissau have been identified for withdrawal, allowing MTN to refocus its efforts on more promising and sustainable markets. At the same time, MTN is pursuing a localization strategy aimed at increasing local ownership in various markets. One such move could involve a potential sell-down of its Nigerian operations, which Mupita noted as a possibility on the horizon.
- FinTech Expansion: Transforming Financial Services Across Africa
Financial technology (FinTech) is a critical element of MTN’s growth strategy. Recognizing its transformative potential, MTN is expanding its FinTech offerings with great ambition. One standout initiative is the company’s recent partnership with Mastercard, a collaboration designed to introduce virtual wallets and physical cards to several key African markets, including Rwanda, Uganda, Côte d’Ivoire, Cameroon, and Ghana. This initiative aims to broaden access to financial services and drive further financial inclusion across the continent.
- Building a Fortress Balance Sheet
In today’s unpredictable economic environment, maintaining a strong and resilient financial position is essential. Mupita emphasized MTN’s commitment to a “fortress balance sheet,” a strategic focus that ensures the company is well-equipped to weather any economic downturns while positioning itself to seize emerging opportunities. This robust financial foundation is integral to MTN’s ability to remain agile and continue its growth trajectory amid global economic challenges.
Nigeria: Charting a Course Towards Recovery
Nigeria, a cornerstone of MTN’s extensive operations, commanded significant attention during the forum. Mupita expressed considerable confidence in the country’s economic trajectory, forecasting a “V-shaped recovery” at the earnings level. This optimistic outlook is underpinned by several positive factors, including the stabilization of currency movements, a downward trend in inflation, and the favorable impact of recent tariff adjustments. Consequently, MTN anticipates robust service revenue growth and margin expansion within its Nigerian operations, with a return to dividend contributions expected by the second half of the following year.
“We see a V-shaped recovery in Nigeria at the earnings level. With currency movements stabilizing, inflation coming down, and tariff adjustments taking effect, we’re confident about strong service revenue growth and margin expansion. We expect Nigeria to return to contributing dividends by the second half of next year.”
– Ralph Mupita, President and Group CEO, MTN Group
Engaging with Investors: Addressing Key Concerns and Future Outlook
Mupita and his executive team recently wrapped up a three-week roadshow, engaging with shareholders in key financial hubs such as Johannesburg, New York, Boston, San Francisco, and London. These discussions revealed several recurring themes and investor concerns that are crucial to MTN’s strategic direction.
Geopolitical uncertainty was a prominent concern, with investors worried about the potential impact of global trade tariffs and reduced foreign aid on MTN’s diverse markets. This concern highlights the need for MTN’s flexibility in navigating complex geopolitical landscapes to maintain its market leadership.
Investors also sought insight into Nigeria’s economic recovery, particularly the sustainability of ongoing reforms and the untapped potential of the country’s mobile money sector. The future of Nigeria’s economy is crucial to MTN’s growth prospects in the region, and investors are keen to understand how it will impact their operations.
Additionally, South Africa’s political landscape emerged as a key topic, with investors interested in the stability of the Government of National Unity (GNU) and its approach to competition and investment policies. These factors will be important for MTN’s long-term outlook in the country.
Lastly, discussions around technological disruption centered on the integration of emerging technologies like LEO satellites, AI factories, and 5G networks. It was emphasized that these technologies should complement existing infrastructure to ensure seamless, always-on connectivity for businesses and consumers.
Navigating the Technological Revolution: A Strategic Approach
Mupita outlined MTN’s strategic view on several key technological trends shaping the future of connectivity. One of the standout developments is the integration of low-Earth orbit (LEO) satellites, which MTN sees as a complementary technology to enhance connectivity, particularly in remote and underserved regions. However, Mupita emphasized that for LEO satellites to be effective, a “same service, same rules” regulatory environment is crucial. This ensures fair competition and integrates satellites into a larger ecosystem of connectivity solutions.
As MTN continues to evolve, the company is also placing a strong focus on its 5G network expansion. Balancing the substantial investment required, MTN is strategically positioning its 5G infrastructure to unlock both immediate and long-term opportunities. Beyond 5G, MTN is exploring fixed wireless access and fiber-to-the-home (FTTH) solutions, which will allow the company to diversify its offerings and meet a wider array of connectivity needs.
A key aspect of MTN’s strategy is addressing device affordability, which remains a significant barrier to digital inclusion. In response, MTN is actively working with original equipment manufacturers (OEMs) to lower the cost of 4G-enabled devices. This initiative aims to make these devices more accessible, opening up opportunities for broader digital adoption.
Regulatory and Market Dynamics: Fostering a Sustainable Ecosystem
Discussions also delved into the crucial aspects of regulatory and market dynamics that shape the operating environment.
One of the focal points was tariff liberalization. MTN is actively engaging with Nigerian authorities to advocate for more flexible tariff structures within the telecommunications sector, aligning with global best practices that encourage innovation and investment. While Nigeria has gradually implemented a 50% tariff increase, MTN’s long-term goal is to achieve a more liberalized tariff system within the next 2-3 years, creating a more competitive and dynamic market.
In the same vein, Mupita emphasized the importance of balanced competition policies. Such policies, he explained, must not only foster consumer choice but also serve the public interest and encourage continued investment in the sector. Drawing from the evolving regulatory landscape in the European Union, he highlighted the need for frameworks that support sustainable growth while promoting competition.
Another important topic was the development of African tech champions. Mupita stressed the significance of nurturing homegrown companies that can drive digital transformation across the continent. While recognizing the influence of global tech players, he argued that it is crucial for Africa to invest in and support local innovation, enabling the continent to build tailored digital ecosystems that address its unique challenges and fully unlock its digital potential.
A Local, Yet Global Approach to Streaming with MTN TV
MTN’s proposed launch of MTN TV in Nigeria aims to complement global streaming services like Netflix, focusing on local content that resonates with Nigerian audiences. The platform offers a blend of both global and locally produced content, providing an accessible, culturally relevant streaming experience. While global platforms dominate, African audiences increasingly seek content that reflects their identities. MTN TV meets this demand by allowing viewers to enjoy both Netflix and MTN TV, without having to choose one over the other.
This move aligns with MTN’s broader goal of becoming a comprehensive Over-the-Top (OTT) service provider. As MTN plans to expand across Africa, its focus will be on local content, affordability, and establishing itself as a key player in the digital entertainment sector.
“We’re always focused on providing services that build on top of connectivity. We see ourselves as an OTT platform in our own right. MTN TV will launch in Nigeria, and while there were headlines suggesting we’re competing with Netflix, that’s not the case. What we’re doing is complementary, with a strong focus on curating local content in Nigeria. We believe we can offer this at a competitive price point, catering to a customer base that appreciates both local and global content on MTN TV. Our aim is not to compete, but to provide an alternative. Customers can enjoy MTN TV alongside Netflix, and that’s perfectly fine. We run on different tracks. After launching in Nigeria, we plan to expand to other markets.”
-Ralph Mupita, President and Group CEO, MTN Group
Looking Ahead: Driving Africa’s Digital Future
Mupita’s presentation highlighted MTN’s strategic focus on navigating a complex global landscape while staying true to its long-term vision. The main takeaway is that Africa’s digital transformation is about building a local ecosystem that balances relevance, global competitiveness, and sustainable investment.
At TechAfrica News, we’re excited to track Africa’s evolving digital journey and look forward to seeing how MTN and other industry leaders shape this transformation.
