• MTN entered advanced talks to acquire IHS Towers, in which it already holds a 25% stake.
• A full acquisition could value the remaining shares at about $2.06 billion.
• Africa’s telecom tower market is projected to reach $4.03 billion in 2026.

South African telecom group MTN said on February 5 that it has entered advanced discussions to acquire tower company IHS Towers, in which it already owns a 25% stake. The potential deal remains uncertain, but it signals a possible move into the telecom tower market as part of MTN’s diversification strategy.

In a statement published on the Johannesburg Stock Exchange, MTN said a potential offer price could align with IHS Towers’ last trading price on the New York Stock Exchange on February 4, 2026, which stood at $8.23 per share. With 333.4 million shares outstanding, IHS Towers carries a market capitalization of $2.74 billion. The implied value of the remaining 75% stake could therefore reach about $2.06 billion.

MTN said the move comes as IHS Towers’ share price on the NYSE has recorded “a significant increase in recent times.” The group added that if the transaction does not materialize, it will continue to “explore options to unlock value from its investment in IHS.”

Business Diversification

The initiative comes as MTN, like many African operators, continues its transition from a traditional telecom operator into a technology company. The group aims to respond to rising demand for digital solutions, services, and infrastructure across Africa, while revenue from legacy segments such as voice continues to decline.

MTN Chief Executive Officer Ralph Mupita recently told Semafor that the group is seeking fintech start-ups that it could acquire and integrate directly into its platform. He said the targets include companies operating in payments, lending, and money transfers to strengthen MTN’s fast-growing fintech business.

“This is about strengthening the platform. If an acquisition helps us grow faster, improve the customer experience, or bring new capabilities into the group, that is what interests us,” Mupita said.

The exploration follows several recent strategic initiatives. MTN partnered with UK-based video software provider Synamedia in April 2025 to develop a new streaming platform. In March, the group launched MTN Ads, a digital advertising platform developed with Aleph. In July 2024, MTN announced plans to build a carrier-neutral Tier IV data center in Lagos, Nigeria. In September 2025, the company said it was seeking international partners to develop artificial intelligence-focused data centers across Africa.

At the same time, MTN carved out its infrastructure subsidiary Bayobab, formerly MTN GlobalConnect, to build an open, world-class digital infrastructure platform accessible to both MTN and third-party operators.

Africa’s Telecom Tower Market

MTN previously sold part of its telecom tower portfolio to IHS Towers as part of an industry-wide trend to unlock asset value. In 2022, the company completed the sale of 5,701 towers for $412 million. Since 2013, IHS Towers has acquired MTN-owned towers in Côte d’Ivoire, Cameroon, Zambia, Rwanda, and Nigeria, while also purchasing towers from other operators in additional markets.

The renewed interest in tower assets comes as Africa’s telecom tower sector continues to expand. A study published in 2025 by Mordor Intelligence said accelerated 4G and 5G rollouts have pushed pan-African operators to multiply sites, particularly in major cities such as Lagos, Nairobi, and Johannesburg, which has boosted demand for colocation and new infrastructure.

According to data from the International Telecommunication Union, 4G and 5G penetration rates stand at 75.2% and 11.8%, respectively, while 2G and 3G penetration reach 94.1% and 88.8%.

Rising data consumption and growing smartphone penetration, driven by streaming, social media, and mobile payments, continue to increase data usage per subscriber and require more robust sites capable of hosting multiple operators. In parallel, government mandates and universal service funds finance tower construction in rural and hard-to-reach areas, which guarantees minimum revenues and reduces risk for tower companies.

The market currently includes major players such as American Tower Corporation, Helios Towers Plc, SBA Communications Corporation, and Pan African Towers. Other telecom groups also operate in the segment, including Axian Telecom through its TowerCo of Africa, which operates in Madagascar, the Democratic Republic of Congo, Uganda, and Tanzania. Indus Towers, majority-owned by Bharti Airtel, announced plans in September 2025 to expand into Africa, starting with Nigeria, Uganda, and Zambia.

Mordor Intelligence estimates the African telecom tower market at $4.03 billion in 2026 and projects a compound annual growth rate of 3.35%, which would lift the market to $4.75 billion in the coming years.

MTN Group reported revenue of 188 billion rand in 2024, down 15% year on year. The company posted a loss after tax of 11.2 billion rand in 2024, compared with a profit after tax of 4 billion rand in 2023.

This article was initially published in French by Isaac K. Kassouwi

Adapted in English by Ange J.A de BERRY QUENUM