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(Ecofin Agency) – The covid-19 pandemic has forced the acceleration of digital transformation efforts in Africa. With the change in customer habits, several telecom companies have been forced to rethink their business model.
African MTN Group is rebranding as part of its strategy to position itself as a technology company rather than a telecom company. The official change of its visual identity as well as the launch of the related communication campaign announced for Sunday 27 February, will mark the effectiveness of this transformation. In March 2021, at the launch of its new operational strategy called “Ambition 2025”, MTN Group justified the need to transform itself to tap into the opportunities offered by the Covid-19-induced change in the global operating environment. The company said that “in light of the digital acceleration taking place around the world, MTN recognizes the opportunity to lead in digital services in our markets” and the opportunity to “align our priorities more closely with the development agenda of our operating markets.”
MTN Group’s transformation into a technology company comes after several strategic divestitures over the past year, including the sale of telecom towers in several countries, the divestment of shares in a few subsidiaries to focus on the development of value-added services. The company has identified four key areas to focus on. These are fixed and mobile connectivity, digital financial services, business technology services, and entertainment services.
Earlier this week, MTN Group announced plans to recruit additional 150 technology experts to strengthen its workforce. They will work in various areas such as artificial intelligence (AI), the Internet of Things (IoT), robotics, mobile applications for financial transactions, transportation, and automated utility delivery.
Through its transformation, MTN wants to leverage the accelerating digitalization in Africa and the change in people’s consumption habits brought about by Covid-19. The demand for connectivity has increased, and the use of digital services such as e-payment, e-health, e-commerce, and on-demand television has also grown.
Isaac K. Kassouwi
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