Telecom
Moody Predicts more M&A Activity in Africa’s Telecoms Sector
Africa’s telecoms sector will undergo more mergers and acquisition (M&A) activity as its markets continue to consolidate as they mature, Moody’s Investors Service says in a report published.
Moody’s expects more consolidation within markets as existing operators – particularly smaller third or fourth tier companies – look for ways to cut costs and expand their market share.
The African telecoms market is comprised of a mix of local, regional and international operators, some of whom have developed competitive regional footprints.
Those African countries with four or more operators or with telecom companies that have a market share of less than 15% are likely to see more consolidation. The average number of operators in each African country is three, with some countries, such as Uganda, Côte d’Ivoire and Tanzania, with six operators.
“Not all countries are able to support a large number of operators, and smaller wireless operators are finding it increasingly difficult to compete and increase their market share profitably,” says Dion Bate, Vice President — Senior Analyst and a co-author of the report.
“Companies considering potential mergers or acquisitions will be hoping for cost savings through improved economies of scale and the opportunity to apply uniform and improved branding, service and product offerings.”
Some operators will need funding to pursue M&A opportunities. With many of the larger international operators already facing revenue pressures and capital expenditure demands in their core domestic markets and thus less likely to pursue M&A opportunities in Africa, we may see some revisiting their African footprints as others seek to strengthen their regional positions.
This refocusing on domestic markets may also result in some European operators leaving African markets where they have smaller shares, the report says.
Some smaller regional players may face weaker access to capital as a result of concentrated exposures to mostly sub investment-grade countries in south, east and west Africa where capital markets are less developed.
Cross-market consolidation will be less challenging for the larger regional operators to pursue where greater geographic diversification and sizable market shares can be achieved, the report adds.
From a regulatory standpoint, operators with the third or fourth largest market share are more likely to be subject to M&A activity to which regulators are less likely to object where it results in economies of scale and increased profitability while not being a detriment to the competitive environment. We expect regulators to also favour transactions that support market stability and further capital investment and the expansion of service offerings. In-market M&A consolidation transactions which result in the largest operators further strengthening their market positions are more likely to face regulatory scrutiny.
Africa’s telecoms regulators are expected to increasingly promote market competition and improved network quality, in line with a trend seen in more developed markets.
Operators will also try to contain cost pressures through strategies such as network sharing, tower sales and outsourcing to specialised third parties.
Telecom
Celebrating African Creativity: Made by Africa, Loved by the World’ Returns for Its Fifth Year
The “Made by Africa, Loved by the World” campaign is back for its fifth year, celebrating African creativity and global influence. This year’s theme, “Where Culture Meets Connection,” highlights how social media fosters conversations around cultural moments worldwide.
The campaign features three cinematic films premiering on the Meta Africa page, showcasing the groundbreaking work and personal stories of six dynamic African creatives.
These artists, from Nigeria, Kenya, Ghana, and South Africa, represent diverse disciplines, including rap, animation, dance, photography, fashion, and videography.
Here are some of the featured talents:
- Ladipoe (Nigeria) – A BET-nominated rapper known for blending global hip-hop with African rhythms.
- Fatboy Animations (Kenya) – An animation studio founded by Michael Muthiga, recognized by Forbes for its original African storytelling.
- Lisa Quama (Ghana) – A dancer who gained fame after appearing in Beyoncé’s “Already” music video.
- Gilbert Asante (Ghana) – A photographer and creative director featured in GQ and Glam Africa.
- David Tlale (South Africa) – A fashion designer whose bold designs have been showcased at major fashion events, including the Met Gala.
- Ofentse Mwase (South Africa) – A filmmaker with over 24 international awards for his unique visual storytelling.
Kezia Anim-Addo, Communications Director for Africa, Middle East & Turkey, emphasized that the campaign not only celebrates individual success stories but also showcases how culture and social media drive meaningful connections and inspiration.
Association of Telecommunications Companies of Nigeria (ATCON), has raised the alarm over a diesel supply crisis caused by an ongoing strike by the National Union of Petroleum and Natural Gas Workers (NUPENG).
Mr Tony Emoekpere, president, ATCON in a statement said that the fuel supply disruption is critically affecting telecom base stations, pushing them to the brink of a shutdown and threatening millions of mobile and internet users in the region.
“This strike, which stems from the persistent harassment of tanker and petroleum product drivers by police officers in Lagos State, has effectively halted all truck loading operations and fuel movements,” Emoekpere stated.
He explained that diesel supply to telecom infrastructure has been severely impacted, leaving critical sites with dangerously low fuel levels.
According to him, if urgent measures are not taken, the situation could escalate into a full-blown network blackout, disrupting essential services, including mobile and internet access, business operations, emergency response systems, and daily communications.
ATCON has called on the governors of Lagos and Ogun states to intervene immediately by facilitating the release of diesel from depots to telecom operators to prevent further deterioration of the situation.
“This is not just a telecom issue—it is a national emergency that could cripple economic activities and compromise public safety,” Emoekpere stressed.
The association also appealed to security agencies and petroleum unions to resolve the crisis swiftly to safeguard Nigeria’s connectivity and economic stability.
ATCON emphasised that a prolonged disruption in fuel supply to telecom infrastructure could have far-reaching consequences for both businesses and individuals who rely on stable communication networks for daily operations.
In 2023, Nigerians spent a total of about ₦5.3 trillion on telecommunications services, which includes calls, data, SMS, and other telecom services, according to the Leadership.
Specifically for voice calls, Nigerians made approximately 408.5 billion minutes of local calls, generating around ₦3.28 trillion from outgoing calls and ₦3.23 trillion from incoming calls, totaling about ₦6.51 trillion in call-related revenue according to projections based on 2023 call volumes and tariff data.
However, the ₦5.3 trillion figure represents the overall telecom sector revenue, with voice calls being a major component but also including data and other services.
For individual spending, MTN subscribers spent an average of ₦2,508 monthly on voice calls in 2023, showing a 14.4% increase from 2022, while Airtel customers spent about ₦1,694 monthly on voice calls.
Total telecom spending (calls, data, SMS, etc.): ₦5.3 trillion in 2023
Estimated revenue from voice calls alone: around ₦6.5 trillion based on call minutes and tariffs
Average monthly spending on calls per subscriber: ₦1,694 to ₦2,508 depending on the network
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