Bloomberg reports that MTN Group Limited is set to revise the prices of its products in 19 African countries.
South Africa, Nigeria and Ghana are some the markets Africa’s largest wireless carrier has its businesses established.
Per reports, the revision is due to inflationary pressures MTN Group Limited is battling.
MTN Chief Executive Officer Ralph Mupita in the statement on trading update said “within this environment of elevated inflation, implementing selective price increases across the portfolio remains a critical priority.”
“We anticipate that trading conditions across markets will remain challenging for the remainder of 2023,” he added.
Inflation across MTN’s footprint averaged 18.5% during the first quarter, compared with 11.5% a year earlier, the statement said.
Inflation in Africa has been fueled by Russia’s war in Ukraine and the impact of debt accumulated during the Covid-19 pandemic on the region’s currencies.
Additionally, in South Africa, MTN’s home market, power cuts have worsened, contributing to price pressures, stunting economic growth, and reducing spending in the country.
Meanwhile, in Ghana, where inflation exceeded 50% but is currently on the decline, interest rate hikes are making it difficult for consumers to afford credit.
MTN’s revenue in the first quarter reached 53 billion rand ($2.8 billion), a 15% increase from the previous year.
Although there is a possibility of local exchange rates weakening against the dollar and the need for accelerated work in South Africa to enhance network resilience due to power cuts, the capital expenditure for the year will remain at 37.4 billion rand.
MTN has revealed that it is assessing the possibility of exiting Guinea-Bissau, Guinea-Conakry, and Liberia in West Africa in the medium term.
The telecommunications company has received an offer for its equity interests in these three units from Axian Telecom, and the offer is currently under evaluation.