MTN: Leading Digital Solutions for Africa's Progress

Based on the belief that "everyone deserves the benefits of a modern, connected life", MTN , the largest mobile network operator in Africa, launched "Ambition 2025" strategy at the beginning of 2021 to accelerate its growth in the region. Mazen Mroue, CTIO of MTN Group, provides insights on the company's Ambition 2025 plan, and shares how his team is accelerating the execution of the strategy through the new technology framework PACE (an acronym for Platform, Agile, Connectivity and Experience). He also talks about expectations for partners including ZTE in facilitating the transformation of the African continent.

As an industry veteran who had worked across many markets including Uganda, Nigeria and Ghana, what have been the major changes you have observed in recent years, and how will MTN carry out its transformation journey in 2023 and beyond? 

In recent years, most of African markets and specially where MTN is operating have experienced significant positive changes in their respective environments. One of the major changes is the rapid advancement of technology, especially in the Mobile, Internet and Fintech sectors. The increasing access to affordable smartphones and internet connectivity has led to a significant increase in the number of people using online services and connected the unconnected, which has created new opportunities for businesses to expand their reach and transform their commercial activities.

Another significant change is the increasing focus on entrepreneurship and innovation, as more young people are starting their own businesses and developing innovative solutions to address local demands and challenges. This trend has been particularly notable in the technology domains, where startups are emerging to provide solutions to problems such as fintech, education, healthcare, transportation, and agriculture.

Additionally, the successful investment in telecom infrastructure has helped to facilitate economic growth and development and became an example to attracting foreign investment and improving the business environment, which has further contributed to economic growth. Also, during the pandemic we have played an important role in supporting the surge in mobile data usage enabling customers and students to perform their duties remotely, which has accelerated the digital transformation trend and processes.

In 2023 and onward, we continue positioning MTN as a growth company and want to be seen as a business of connectivity and platforms with fintech and digital services prioritized to deliver the next level of sustainable success and growth. We are encouraged by the collaborative efforts driving the execution of our corporate strategy "Ambition 2025" which is embodied in four clear strategic priorities: Building the largest and most valuable platforms, driving industry-leading connectivity operations, creating shared value, and accelerating portfolio transformation.

As the major sponsor of PACE and Ambition 2025 strategy, what do you think will be the major challenge of  the transformation of MTN as the biggest telecom giant in Africa? How do you think this transformation will impact on the network evolution? 

As MTN Group Technology team we have recently refreshed our Technology strategic framework & operating model, we have incorporated findings from deep dive analysis conducted and launched the PACE framework focusing on accelerating the execution of Ambition 2025 by identifying 15 strategic pillars which will enable the business to achieve sustainable growth in connectivity & platforms based on second to none differentiated Technology platforms and experiences supporting the overall purpose "Leading the digital solution for Africa's progress". We are actively working to transform our business to be evolved into platform business, accelerating growth in both traditional and new platform verticals: Digital, Fintech, Network as a service, API Marketplace—Chenosis and B2B. This is an essential transition given the major technological distribution trends around the globe, and several players are moving in the same direction—As MTN we have a great chance to continue leading the digital transformation here on the continent.

In parallel, there are still challenges that need to be addressed, such as inadequate infrastructure in some areas and the rapid pace of technological changes which are posing a challenge for us in some markets. As a market leader in an industry that continues to be evolved, we will need to continue investing in new technologies and services to stay competitive which is an expensive route and not easy to justify. Therefore, while we are actively investing in new technologies, we need to accelerate the commercial activities to monetize and deliver sustainable and profitable growth.

MTN has a strong and successful track record of adapting to changes in our markets, and with the right strategies, investments and partners, we believe we can continue to grow and succeed in the long run.

Looking into the future, what's your outlook of digital transformation in the African region over the next five years? What is your opinion on the role MTN should be playing during the process? How does MTN's underlying network strength differentiate it in the telecom space?

The African markets are currently going into a significant digital transformation program, with rapid advancements in technology and increasing adoption of digital solutions across different sectors and domains. Over the next five years, this trend is going to continue to be driven by several factors.

This includes the increasing availability of affordable access to internet and mobile connectivity which will facilitate the adoption of digital solutions across the continent. With more people having access to internet, there will be increased demand for digital services and solutions, including Fintech, e-commerce and online education.

Over the last years, MTN has invested heavily in building second to none networks across our markets allowing users to leverage the connectivity services to have access to digital solutions. We have also invested in advanced technologies such as 4G and 5G to ensure that our networks can support the growing demand for high-

speed data services with low latency, opening the door to offer advanced services beyond access to internet, contributing to the drive of digital and financial inclusion programs across different markets.

We believe, with our network and technology strengths, we have managed to establish significant competitive advantage in the connectivity space providing the foundation to offer advanced fintech, digital and e-commerce solutions to our consumer, business and wholesale customers.

Today, more than 60% of Africa's population is under the age of 25. By 2030, young Africans are expected to constitute around 40% of global youth. Therefore, the growing young and tech-savvy population in Africa is likely to play a significant role in driving digital transformation leading to increasingly using digital devices, and is more open to adopting new technologies and solutions. So the outlook of the digital transformation in the Africa over next years is positive, with significant opportunities for growth and development but it requires us to continuously invest in digital infrastructure and systems which are very crucial to realizing the available opportunities.

As a strategic partner of over 10 years, how do you see ZTE in the former cooperation? To meet those challenges, what is MTN's expectation on ZTE in future cooperation? 

Overall, the supplier ecosystem is playing a critical role in supporting our business growth and development across all our markets. We strongly believe that with the right partners everything becomes possible. I would like to convey my appreciation so much to all our strategic partners including ZTE for the hard and close work delivered to MTN during recent years. We remained resilient under difficult macroeconomic conditions, and with the continuous support we have been able to continue delivering solid operational and business performance. I massively appreciate the partnership and looking forward to the future.

What is your suggestion on ZTE's opportunity and strength in the transformation of whole African area?

We expect our suppliers and partners including ZTE to remain robust and agile within the supply chain ecosystem to support business growth in Africa. We have commitment to transform our business landscape by delivering successful business and corporate social responsibilities. We encourage all our partners to increase their investment in research and development to help reduce costs and increase efficiency to accelerate the internet penetration, financial and digital inclusion specially in markets generating low ARPU. We encourage our partners to promote sustainability and social responsibilities, working with suppliers who share similar value and practices can help to advance our commitment toward ESG targets. We also call on our partners to invest in building national capacities and effectively use local talents in African markets where we operate.