MTN UNVEILS NEW GROWTH STRATEGY
…as it plots to take over Africa
JOHANNESBURG
- Mobile telecommunications group MTN, which is plotting to exit markets outside the African continent, has now embarked on a plan of separating its infrastructure assets business as it looks to enhance growth through streamlined operations.
CEO Ralph Mupita said on Wednesday that fibre and fintech were some of the businesses that would be structurally separated to attract third-party capital and partnerships over the medium term, in what has been
termed "Ambition 2025."
"We already have 85, 000km of fibre and we believe that there is significant investment required and we would look to attract third-party capital," he said.
With over 46 million subscribers, Mupita described the company's fintech division as a "scale business" and MTN forecasts that subscriber numbers will hit 100 million over the next five years, making it attractive investment to players in the tech sector.
"This is a scale business that can sit in its own structure, separated from the GSM (Global System for Mobile Communications) business. Where it makes sense, we are seeking to structurally separate and create these businesses as separate vehicles for investors participate in."
MTN plans to invest approximately R29.1 billion in its network, fintech and digital services platforms in 2021, in support of its 2025 ambition.
The primary goal for the strategy is firmly focused on anchoring its attention on Pan-African markets, following an announcement last year to exit Middle Eastern markets, where it has often encountered growing operational challenges.