MTN Group CEO Ralph Mupita raised concerns regarding the impact of the global tariff war on telecommunications investments, especially in light of Trump's policies.
Effects of Trump's Tariff Policy
Ralph Mupita emphasized that U.S. tariffs and trade measures could significantly alter capital spending in the telecommunications sector. Rising prices for radio equipment may adversely affect operators across Africa and beyond. Mupita noted, *'We anticipate that global growth will slow, and the tariffs, especially if they are sustained over a long period, will keep inflation more elevated than it would otherwise have been.'*
MTN's Strategy Amid Uncertainty
MTN has allocated about $2 billion for capital expenditure on network infrastructure in its 2025 financial year. Mupita stated that the company would be largely shielded from supply chain shocks, hoping to rely on deals concluded in advance. Notably, MTN is dependent on Chinese vendors like Huawei Technologies, allowing the company to lower costs.
Long-term Challenges for the Telecom Industry
Mupita also noted that despite short-term buffers, if tariffs continue, inflationary pressures could lead to problems for operators, including MTN. Analysts warn that prolonged tariffs may create a bifurcation in technology markets, complicating operations for companies like MTN amid existing economic instability in Africa.
The situation with tariffs and U.S. trade policy could significantly impact investments and operational strategies for telecom companies like MTN, jeopardizing long-term plans for service expansion and dynamic growth on the continent.
