MTN CEO Ralph Mupita has called for the modernisation and harmonisation of regulatory frameworks across Africa, as well as the collective effort of all stakeholders to ensure that the continent can deliver universal broadband coverage by 2030.
In a statement, MTN said Mupita was speaking at the Africa Prosperity Dialogue held in Peduase in the eastern region of Ghana over the weekend.
Mupita said the regulatory frameworks for Africa’s telecommunications industry did not reflect the current advancement. They were still positioned for the era of voice, he said.
“As the world continues to undergo major digital transformation and disruption, our regulatory frameworks need to evolve to reflect these technological advancements,” he said in his address on “Moving from Ambition to Action: The Role of Telecommunications in Deepening Intra-African Trade, Challenges, and Opportunity.”
Mupita spoke of the need for a robust regulatory framework that was relevant and future fit. There was also a need for all participants in the sector to contribute to building and investing in infrastructure.
“A fair share contribution by both local and international players including mobile network operators and OTTs (over-the-top communication services),” he said.
He said Africa would need around $100 billion (R1.7 trillion) in capital investment to reach its goal of universal broadband for all Africans by 2030.
Mupita’s comments come as MTN was hit with a R13 billion tax assessment by the Ghana Revenue Authority (GRA) on January 11, due to new methodology to track call data records. The amount included penalties and interest charges.
MTN has also been hit by regulatory fines and hurdles in Nigeria in the past.
The revised tax assessment comes from an audit of MTN Ghana, which the GRA instituted in 2019. The assessment looked at the 2014 to 2018 period.
The mobile giant has since said it was questioning the accuracy and basis of the assessment. According to newswire Bloomberg, the mobile operator plans to start a dispute resolution process should talks with the GRA fail.
“It is important to also emphasise that we believe MTN Ghana has paid its due taxes during this period under assessment,” Mupita said earlier this month.
MTN would benefit greatly from the harmonisation of African regulation.
In 2015 MTN was badly burnt in Nigeria after Nigerian regulators had imposed a $5.2bn fine on MTN over the group’s failure to disconnect 5.1 million unregistered SIM cards. Last year MTN Nigeria suspended around 19 million mobile numbers in Nigeria following a government directive to bar calls from unregistered cellphone lines.
Meanwhile, International Relations and Co-operation Minister Naledi Pandor urged MTN and the Ghanaian authorities to urgently find a resolution for the tax dispute.
Last week, Pandor in a statement called on the parties involved to do everything possible to find an amicable solution to the reported challenges.
“South Africa is one of the largest foreign direct investors in Ghana, mainly in mining, communication, beverages, retail, franchising, etc. These investments contribute to the Ghanaian gross domestic product and job creation,”she said.
Pandor said of major concern is that competitors of South African companies from other parts of the world do not appear to be subjected to the challenges that South African companies are subjected to.
She said these unfavourable conditions, have led to disinvestment in some African markets by large South African companies, such as Shoprite, Game, Mr Price, Foschini, Woolworths, Tiger Brands, Sasol-Chemicals, Sasol-Gas, Group Five, Murray and Roberts, Metrolife Group, Telkom, Southern Sun and the Protea Group to mention a few.
“The disinvestment has had a devastating impact on employment opportunities, poverty and inequalities, in particular, and GDP (gross domestic product) growth, in general,” she said.
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