MTN invests $2bn yearly in network upgrades – CEO

MTN Group is channelling $2bn each year into upgrading its networks, a steady push to shift from 3G to 5G and widen coverage across Africa, Group President and CEO Ralph Mupita said.

The $2bn capital expenditure, a figure Mupita detailed, funds network refreshes, more capacity, and connections for underserved pockets, stretching further as tech prices dip through cycles.

“We’ve been able to buy more with that envelope,” he told Bloomberg TV over the weekend, noting MTN’s knack for smart procurement over luck. With average revenue per user hovering at $2 to $3—sometimes $5—the spend has to pull double duty.

The yearly investment covers upgrades to existing infrastructure, more capacity, and better connections for areas with little or no service. He said falling tech costs have helped MTN get more value out of the same budget.

In Nigeria, MTN’s biggest slice of its 280 million subscribers across 17 countries, 2024 showed a twist.

Its financial report for the year ended December 31 logged capex soaring 168.3 per cent to N1.53trn, but tower lease renegotiations took the lion’s share.

Without leases, spending on fibre, base stations, and tech dipped to N443.5bn from N449.3bn in 2023—a quiet retreat for a telco with over 80 million local users.

Mupita sidestepped the U.S.-China tech tussle, calling them “two big elephants” MTN aims to dodge.

“We try to be neutral,” he said, a stance he sees mirrored across African firms wary of geopolitical ripples. The focus stays on execution—making that $2bn stretch without picking sides.

On artificial intelligence, Mupita said the benefits for MTN’s customers and Africa may still take time. He noted that while a few years ago there were barely any African voices at AI conferences, local languages are now starting to be included in AI models.

“It’s like smartphones,” he said—slow to start, then a quick catch-up for the continent.

With low revenue per user and big plans, Mupita said the $2bn annual investment is a strategic move—not a luxury. The goal, he said, is to build Africa’s digital future, one step at a time.