MTN plans $1bn investment in Ghana

MTN Group, one of Africa’s largest telecommunications companies, has announced a $1 billion investment in Ghana over the next five years. The move comes after the Ghanaian government exempted the company’s local unit from tax claims of approximately $773 million. The tax claim was the result of a revenue audit conducted by the revenue authority, which found that the company had under-declared its revenue by 30% between 2014 and 2018.

Despite the challenging macroeconomic conditions in the country, MTN remains committed to investing in Ghana in the medium and long term, according to MTN’s CEO Ralph Mupita. He added that the company’s investment would focus on 5G technology, which is expected to spur growth across various sectors.

Ghana is currently facing its worst economic crisis in a generation, with capital outflows, rapid currency depreciation, and a crushing debt-service burden affecting government and household finances. Despite this, the country’s consumer inflation slowed slightly to 53.6% year-on-year in January, down from a more than two-decade high of 54.1% the previous month. The MTN investment is expected to provide a much-needed boost to the country’s economy and telecommunications sector.