(Ecofin Agency) - Maroc Telecom's subsidiaries in Sub-Saharan Africa are becoming key drivers of its growth, especially as it faces tough competition in its saturated home market.

In 2023, the Moroccan telecom group Maroc Telecom reported a consolidated revenue of MAD36.78 billion ($3.6 billion), according to its annual financial results released on Friday, February 16. This is a 3% increase from the MAD35.7 billion in 2022. The rise is mainly attributed to growth in revenue from its Moov Africa subsidiaries and fixed internet activities in Morocco.

The company's revenue from its Sub-Saharan Africa activities grew by 6.6% to MAD18.38 billion in 2023, driven by a 22.6% increase in mobile data, an 11.3% rise in fixed internet, a 5% growth in mobile money activities, and a decrease in call termination rates.

In Morocco, Maroc Telecom's revenue was MAD19.5 billion over the period. A 7.2% increase in fixed data revenue compensated for a 1.3% drop in mobile revenue, stabilizing the company's income. The Moov Africa subsidiaries are becoming increasingly important to Maroc Telecom's growth, as the company navigates intense competition in its saturated domestic market. In contrast, Sub-Saharan Africa, where only 43% of the population had access to mobile services in 2022 according to the GSMA, offers significant growth potential amid rapid digital transformation and increasing demand.

Aware of the importance of its sub-Saharan subsidiaries, Maroc Telecom is investing heavily to boost its competitiveness. In July 2023, the group announced a €150 million investment in a new submarine fiber optic cable named "West Africa" to connect its subsidiaries Moov Africa and other operators in the West African region to the international optical loop in Europe. It is also negotiating a 375 million euro loan from the IFC to support its activities in the region.