MTN Rwanda upbeat over growth prospects

Telecommunications giant MTN in Rwanda is optimistic about its growth prospects as it ramps up its network infrastructure investment by nearly 30%. In an exclusive interview with CNBC Africa, the newly appointed CEO Mapula Modibe highlighted the company's vision to invest 45 billion Rwandese Francs starting in 2023 amidst a fiercely competitive landscape in the telecom sector. One key initiative driving MTN's expansion is the launch of the MTN Device Financing program, known as MACHE MACHE. This innovative program aims to make smartphones more accessible and affordable to customers by allowing them to pay incrementally using mobile money. Modibe emphasized the importance of addressing the financing gap for smartphone acquisition, particularly amidst rising inflation rates in the region. The company is committed to enhancing network coverage and stability, with a significant investment focus on infrastructure development. Over the past five years, MTN has invested over 130 billion francs to ensure network connectivity across 98.7% of the country, with plans to allocate a further 45 billion francs in the upcoming year. Modibe underscored that universal connectivity is a fundamental right that MTN is dedicated to providing. Amidst the rapid expansion and technological advancements in the industry, MTN is gearing up to roll out 5G connectivity in Rwanda within the next 12 months. The company's strategic approach includes leveraging the new broadband policy to deploy its 4G network independently and progress towards the implementation of cutting-edge technologies. Modibe expressed the company's commitment to enhancing security measures, particularly in mobile money transactions, to safeguard customer funds and identities. MTN has implemented stringent Know Your Customer (KYC) protocols, including facial recognition for new SIM card registrations, to mitigate fraudulent activities. The CEO affirmed MTN's proactive stance in refunding customers for any losses incurred and collaborates with security agencies to address illicit practices. Despite intensifying competition in the telecom sector, with rival players like Airtel making significant investments in innovation, Modibe views competition as beneficial for driving consumer-centric services. However, she cautioned against value destruction due to excessive market competition that could impede the company's ability to fulfill tax obligations and subsidies, highlighting the importance of sustainable profitability. The company remains dedicated to reducing calling and data costs to ensure affordability and accessibility for all segments of the population. MTN's ongoing efforts to review pricing structures quarterly demonstrate its commitment to aligning services with customers' economic realities amidst inflationary pressures. By prioritizing innovation, infrastructure development, and customer-focused strategies, MTN Rwanda aims to consolidate its market leadership position and deliver transformative connectivity solutions to Rwandans. As the company continues to invest in cutting-edge technologies and expand its network coverage, MTN is poised to shape the future of telecommunications in the region.