MTN Group is advancing its strategy to establish a standalone fibre business, with CEO Ralph Mupita announcing the acquisition of MTN Zambia’s fibre assets by the newly rebranded Bayobab, previously known as MTN Global Connect. This development is part of MTN’s broader initiative to carve out its fibre infrastructure operations, which includes a significant R6 billion construction project spanning East to West Africa.
Mupita, during a recent media briefing, highlighted the company’s commitment to propelling the fibre business forward under the Bayobab brand. MTN, which boasts the largest mobile network in Africa, has been intensifying its fibre network construction across the continent. The separation of the fibre unit comes on the heels of the successful division of MTN’s fintech business.
The rebranding of MTN’s infrastructure unit to Bayobab marks a strategic move to enhance the company’s focus on regulatory compliance and market expansion, with new fibre operating licenses acquired in several markets.
In collaboration with Africa50, MTN is investing over $320 million in Project East2West, aiming to create a transcontinental fibreoptic network that connects Africa’s eastern and western shores. This project is part of a friendly rivalry with Liquid Intelligent Technologies, as both companies vie to build the largest cross-continental fibre network.
MTN’s ambitious goal is to extend its fibre network to 135,000km by 2025, with the current length at 114,000km. The company’s confidence in this venture is bolstered by the fintech unit’s success and growing interest from financial institutions in telecom infrastructure.
Significant investments, such as Mastercard’s R3.8 billion stake in MTN’s fintech business and substantial loans secured by related companies, underscore the financial community’s support for MTN’s expansion. These moves come amidst challenges, including the impact of Nigeria’s currency devaluation on MTN’s 2023 operations and earnings, which saw a 72.3% decline in headline earnings per share.
Despite these hurdles, MTN continues to grow, with total subscribers reaching 295 million across its 19 markets.