MTN has called on African governments to adopt regulatory and investment governance reforms to pave the way for economic growth under the African Continental Free Trade Area (AfCFTA).
Speaking at the Biashara Afrika 2024 Forum in Kigali, Thato Motlanthe, Acting Group Chief Sustainability & Corporate Affairs Officer at MTN, emphasised that policy adjustments could help close the digital infrastructure gap.
“By reforming policy, affordability for consumers and investments by operators can be improved. For instance, given that taxes and fees account for 30% of industry revenues, it speaks to the additional resources that can easily be invested,” Motlanthe noted.
AfCFTA could generate $450 billion by 2035
His remarks were made during a three-day event held from October 9th to 11th, which focused on tackling barriers to intra-African trade. Current trade within Africa is still just 13.7%, compared to over 40% in regions like East Asia. Motlanthe pointed out that innovations like infrastructure sharing and national roaming could improve connectivity and drive trade.
“Since the successful implementation of AfCFTA could generate an additional $450 billion in revenue by 2035, a step change is required in investing in the digital economy, because much of this growth will be driven by digital technologies that facilitate trade, remove barriers and open new opportunities for businesses across the continent,” MTN said in a statement.
The forum, co-hosted by the Government of Rwanda, was a platform to explore how intra-regional trade can support AfCFTA’s vision of a unified market across Africa’s 1.3 billion population.
“Convened under the theme “Dare to invent the future of the AfCFTA”, the forum sought to rally the private and public sectors behind AfCFTA and chart a course towards addressing “the structural obstacles and policy challenges that need to be actively addressed to spur investments and realise Africa’s full potential,” according to MTN.
MTN, which operates across 17 African countries, highlighted the need for cross-sector collaborations to build infrastructure that can unlock economic potential. The company’s representation at the forum underscores its pivotal role in providing digital solutions that are essential for integrating African economies.
A key takeaway from the event was the importance of investing in “soft infrastructure”—such as digital skills and education—which is vital for sustainable development. Motlanthe acknowledged the continent’s significant digital skills gap, noting that Sub-Saharan Africa is expected to see over 230 million digital jobs by 2030. To address this, MTN launched the MTN Skills Academy, aimed at equipping people with essential skills for the digital economy. According to Motlanthe, the academy “seeks to up Africa’s digital skills in the up and down streams of the industry.”
Addressing cross-border payments, Mapula Bodibe, CEO of MTN Rwanda, said, “The ability to facilitate seamless, affordable, and secure cross-border transactions is essential for the success of AfCFTA. Small and medium enterprises (SMEs), which account for 80% of Africa’s businesses according to the World Bank, stand to benefit enormously from streamlined payment systems.” This aligns with AfCFTA’s goal of reducing trade barriers and creating a more integrated and competitive continent.
MTN’s focus on improving digital infrastructure highlights a broader challenge: Africa’s estimated $100 billion infrastructure gap.
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