MTN Uganda is transforming into a technology company to respond to the evolving needs of consumers and the digital transformation of industries and sectors. The company’s Ambition 2025 strategy aims to drive digital solutions and accelerate growth in fintech solutions, digital services, enterprise services, network as a service, and the application programming interface marketplace. The low internet penetration in this market is attributed to the high cost of internet and smartphones as well as inadequate infrastructure, especially in remote and rural areas. MTN Uganda is focusing on platforms and partnerships to increase digitalization going into the future. The government has provided a favourable regulatory environment for the growth of the ICT sector, but more measures need to be put in place to address pressing challenges such as high taxation on devices and the internet, limited spectrum, cyber security, and gender disparity. MTN Uganda is investing US$300million in network expansion countrywide, including the rollout of 5G and fibre optic, but there’s a need for the government to come up with measures that will stimulate the uptake of internet-enabled devices such as smartphones to increase usage and drive down the cost of internet.
MTN Uganda’s Transition to a Technology Company
MTN Uganda is one of many telecom companies around the world that has undergone rapid transformation in recent years. The company has developed various products and services that respond to evolving consumer needs, including mobile financial services, internet, voice calls, and SMS services. These changes have created significant social and economic impacts on communities and the country’s economy.
The COVID-19 pandemic highlighted the need for digital solutions in everyday life and business activities, including e-commerce, e-education, and e-health. This digital transformation of countless industries and sectors has compelled MTN Uganda to reposition its business model to take the lead in driving digital solutions for the progress of the country.
MTN Uganda’s Ambition 2025 strategy aims to concentrate on five growth platforms: fintech solutions, digital services, enterprise services, network as a service, and the application programming interface marketplace. By doing so, the company aims to accelerate digital disruptions within financial services, payments, remittances, lending, insurance, and e-commerce.
Although voice services still post good profits, MTN Uganda acknowledges that creating a huge impact on people and communities and ensuring that everyone enjoys the benefits of a modern connected life requires the provision of products and services beyond those of a telecom company.
The potential market for these areas remains immense, as less than 50% of Uganda’s population remains unbanked, and the majority still prefers cash payments. Moreover, Uganda lags behind its neighbors in mobilizing long-term savings and allocating these savings to private sector investment. For instance, bank deposits in Uganda were equivalent to 16.3% of the GDP in 2019, compared to 36.6% in Kenya, and insurance penetration stood at 0.72% in Uganda compared to 3% in Kenya.
In summary, MTN Uganda is transitioning to become a technology company to respond to the evolving needs of consumers and the digital transformation of industries and sectors. The company’s Ambition 2025 strategy aims to drive digital solutions and accelerate growth in fintech solutions, digital services, enterprise services, network as a service, and the application programming interface marketplace.
MTN Uganda’s Focus on Digitalization for Future Growth
MTN Uganda, along with other telecom companies in sub-Saharan Africa, faces the challenge of low internet penetration, which stands at around 52% compared to Rwanda’s 60% and Kenya’s 112%. The high cost of internet and smartphones and inadequate infrastructure in remote and rural areas contribute to this problem.
To address this challenge, MTN Uganda, in line with the MTN Group, is focusing on platforms and partnerships as the best option to increase digitalization going into the future. The company is integrating its service portfolios such as connectivity, Internet of Things, and 5G among others through platforms with open interfaces to external parties to accelerate digitalization. MTN Uganda believes that digitalization is crucial for improving people’s lives and helping countries achieve faster economic transformations.
However, various stakeholders, including the government, need to take bold actions to achieve this dream. The government has provided a favourable regulatory environment for the growth of the ICT sector through the National Broad Band Policy 2018 and the National Payment Systems Act 2020. But more measures need to be put in place to address pressing challenges such as high taxation on devices and the internet, limited spectrum, cyber security, and gender disparity that could deny consumers of more benefits of digitalization.
MTN Uganda is investing US$300million in network expansion countrywide, including the rollout of 5G and fibre optic, but there’s a need for the government to come up with measures that will stimulate the uptake of internet-enabled devices such as smartphones to increase usage and drive down the cost of internet. Increased internet usage will lead to increased economic activities in various sectors, providing more income to the population and more tax revenue collections to the government in the future.
Opportunities for inclusive connectivity still exist as long as there are more efforts towards increasing digital skills literacy, access to devices, and continuous improvement in the fiscal and regulatory environment while building consumer trust for the innovations.
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