Cameroon: MTN announces $225 mln investment over the next three years

Tuesday, 29 August 2023 17:50
Cameroon: MTN announces $225 mln investment over the next three years

(Ecofin Agency) - In Cameroon, the telecom regulator and consumers are pressuring operators to improve service quality and coverage. Orange has committed to investing CFAF150 billion ($247.5 million) in its operations over five years.  

South African telecommunications giant MTN Group plans to invest around $225 million in its Cameroon operations over the next three years. This was revealed by Ralph Mupita, CEO of MTN Group, during an audience granted to the telecoms company's executives by Cameroon's Prime Minister, Joseph Dion Ngute, on Saturday, August 26, on the sidelines of the 15th BRICS Summit, held from August 22 to 24 in Johannesburg, South Africa.

According to MTN Group, some $200 million will be invested in MTN Cameroon's technology and network services. The company will also devote $25 million to strengthening the Fintech activity of its Cameroon unit through its subsidiary Mobile Money Corporation.

This initiative is in line with the commitments made by Cameroon's telecom operators to improve the coverage and quality of their services. To this end, they plan to invest a total of CFAF156 billion this year. Orange Cameroon has committed to investing CFAF150 billion in its activities over five years, including CFAF30 billion in 2023.

MTN's investment in Cameroon should enable the company to modernize and improve the coverage of its telecoms network in order to guarantee quality telecoms and mobile money services to a greater proportion of the population. This should enable the operator to meet the strong demand in the Cameroonian market and to compete more effectively with other operators such as Orange, Camtel, and Nexttel.

The implementation of the three-year investment plan could, however, be slowed by the operational difficulties currently facing MTN Cameroon. The company's bank accounts have been frozen since September 2022, as part of the "Bestinver affair" with Cameroonian billionaire Baba Danpullo. In the first half of 2023, the company had to borrow CFAF91.5 billion to finance its activities.

"Whilst the matter is currently in courts, the Group President and CEO requested the guidance of the Prime Minister on the matter as it is currently affecting not only the operations of the company but the sentiment of the company and country with investors and other stakeholders," said MTN Group. In this regard, Joseph Dion Ngute assured the telecom company's executives that "the issue will be resolved quickly and fairly."

Isaac K. Kassouwi


Public Management

ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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