(Ecofin Agency) - As the demand for digital services continues to grow in Africa, MTN is investing in upgrading its telecom network in its various African markets to better meet this demand.

Pan-African telecom group MTN announced, Wednesday, it will invest US$1 billion in its Ghana business over the next five years. Much of the investment will be spent on the deployment and expansion of fifth-generation (5G) mobile technology in the country, it stressed.

"To be sure, macroeconomic conditions are very challenging in the near term. That said, we are focused on the medium and long term and we are seeing growth," said CEO Ralph Mupita adding that the 5G will boost growth in all sectors of the country.

The investment plan is announced about two weeks after the resolution of a tax dispute between MTN Ghana and the Ghana Revenue Authority (GRA) in mid-January. The GRA claimed that the telecom operator owed US$686.4 million in back taxes and fines, which is the result of about 30% underreporting between 2014 and 2018.

MTN first expressed interest in the Ghanaian 5G in August 2021. It was planning to launch the pilot phase in March 2022 but the project was put on hold as discussions with the National Communications Authority (NCA) were unsuccessful. The discussions are still ongoing to this day. In addition, the acquisition of the 5G license was discussed between the telecom group's CEO and Ghanaian President Nana Akufo-Addo last September on the sidelines of the 77th United Nations General Assembly.

The planned investment is expected to accelerate MTN Group's goal of becoming Africa's leading digital service provider in the coming years as demand continues to grow. MTN Ghana recognizes that its 4G network, which currently covers 99.3 percent of the population, alone cannot meet this demand.

In its June 2022 issue of the "Mobility Report," Ericsson argues that 5G networks will play a critical role in delivering the technology pillars to realize MTN's 2025 plan.

Isaac K. Kassouwi