MTN Group: Expansion into the Ethiopian Telecommunications Market

The South African MTN Group, one of Africa's leading telecommunications providers, has made its ambitions to expand into the Ethiopian market clear. In April 2021, the company confirmed its participation in the bidding process for a telecommunications license in Ethiopia, the second most populous country in Africa.

Ethiopia: The Last Major Telecommunications Market in Africa

Ethiopia is considered the last and largest liberalized telecommunications market in the world. With a population of over 110 million people, the country offers significant growth opportunities for telecommunications companies. The Ethiopian government has taken steps in recent years to open the sector and attract foreign investments.

MTN's Strategy and Ambitions

Participation in the Ethiopian licensing process aligns with MTN's "Ambition 2025" strategy, which aims to drive growth through digital acceleration across the continent. Although MTN and its partners, including the Chinese Silk Road Fund, were unsuccessful in the first licensing round, the company remains determined to expand its presence in Ethiopia.

Challenges and Opportunities

Entering the Ethiopian market presents both challenges and opportunities. Infrastructure needs to be significantly expanded, and competition with established providers requires innovative strategies. At the same time, the low market penetration in the telecommunications sector offers substantial growth opportunities for MTN.

The expansion of companies like MTN Group into new markets highlights the dynamism of the BRICS+ countries. Such initiatives not only promote economic growth but also strengthen economic cooperation within the BRICS+ community. For investors, these markets offer attractive opportunities, particularly in infrastructure, technology, and digital services. Diversifying investments in emerging economies can lead to higher returns and better risk diversification.