In a recent interview, MTN CEO Ralph Mupita discussed the company’s focus on neutrality amid geopolitical tensions, its significant investments in network expansion, and the potential for AI development in Africa, particularly in incorporating local languages. He also highlighted MTN’s strategy to navigate market challenges, including currency volatility, while exploring growth opportunities in fintech through measured partnerships.
In a recent interview, Ralph Mupita, the CEO of MTN, Africa’s largest wireless company, discussed the impact of geopolitical tensions, particularly the US-China competition, on the continent’s business landscape. Mupita emphasized that while these forces are significant, MTN aims to remain neutral and focus on its operations. The company invests around $2 billion annually in capital expenditure to enhance its network capabilities and expand coverage. He noted that as technology costs decrease, MTN has been able to maximize its investments, ensuring that they deliver value to their customers, who typically generate low average revenue per user.
Mupita also addressed the potential of artificial intelligence (AI) in Africa, acknowledging that while the continent was initially overlooked in global AI discussions, there has been notable progress in recent years. He highlighted the importance of incorporating African languages into AI models and drew parallels to the rapid adoption of smartphones in Africa. This suggests that while AI may still be in its early stages on the continent, there is significant potential for growth and development in this area.
Navigating the diverse challenges across Africa’s markets is another key focus for MTN. Mupita pointed out that the company can leverage telecommunications to overcome obstacles such as currency volatility and limited financial services. He emphasized the importance of investing in data demand and maintaining a commitment to the continent’s development, despite challenges like Nigeria’s currency devaluation. MTN’s strategy is to sustain investment in markets where they see long-term potential, even if short-term conditions are difficult.
The CEO also discussed MTN’s strategic decisions regarding market presence, noting that the company has exited smaller markets that did not align with its growth objectives. With a substantial customer base of approximately 290 million subscribers, MTN is focused on delivering quality services and exploring new opportunities for expansion. Mupita indicated that the company is always evaluating potential markets for entry, ensuring that any new ventures align with their mission and financial goals.
Lastly, Mupita touched on MTN’s plans for its financial technology (fintech) operations, revealing ongoing discussions with potential partners, including MasterCard. The company is considering minority investments to accelerate growth while ensuring the right technological capabilities are in place. Mupita emphasized a measured approach to partnerships, indicating that MTN is not under pressure to rush into deals but will pursue opportunities that align with their long-term vision for the fintech sector.