MTN in Talks to Acquire IHS Towers as Africa’s Telecom Tower Market Tops $4 Billion -

South African telecommunications group MTN announced on Thursday, February 5, that it is engaged in advanced discussions to acquire IHS Towers, a telecom tower company in which it already holds a 25% stake. While the outcome of the transaction remains uncertain, the potential deal would mark MTN’s entry into the telecom tower market, aligning with the Johannesburg-based group’s broader diversification strategy.

In a statement released on the Johannesburg Stock Exchange, MTN indicated that the potential offer price could be based on IHS’s most recent closing share price on the New York Stock Exchange (NYSE) as of February 4, 2026, which stood at $8.23. With 333.4 million shares outstanding, IHS Towers’ market capitalization is valued at approximately $2.74 billion. The implied value of the remaining 75% stake targeted by MTN would therefore be around $2.06 billion.

MTN noted that IHS Towers’ share price has experienced “a significant rise in recent times.” The group added that, should the transaction not proceed, it would continue to “explore options to unlock value from its investment in IHS.”

Business Diversification Strategy

This move comes as MTN, like many African telecom operators, is undergoing a strategic transition from a traditional telecommunications provider into a broader technology-driven company. The shift aims to address rising demand for digital solutions, services, and infrastructure across Africa, while revenues from legacy segments such as voice continue to decline.

MTN Chief Executive Officer Ralph Mupita recently told Semafor that the group is actively seeking fintech start-ups to acquire and integrate into its platform. These targets would likely include companies operating in payments, lending, and remittances, further strengthening MTN’s rapidly growing fintech business.

“Our focus is on reinforcing the platform. If an acquisition helps us scale faster, enhance customer experience, or bring new capabilities to the group, that is what interests us,” Mupita explained.

This exploration follows several recent strategic initiatives. In April 2025, MTN partnered with British video software provider Synamedia to develop a new streaming platform. In March, the company launched MTN Ads, a digital advertising platform created in collaboration with Aleph. In July 2024, MTN announced plans to build a Tier 4, operator-neutral data center in Lagos, Nigeria. In September 2025, the group revealed it was seeking international partners to develop AI-focused data centers across the continent.

In parallel, MTN has expanded the autonomy of its infrastructure subsidiary Bayobab (formerly MTN GlobalConnect), with the ambition of building an open, world-class digital infrastructure platform accessible to both MTN and third-party players.

Africa’s Telecom Tower Market

MTN had previously sold part of its tower portfolio to IHS Towers as part of an industry-wide trend to unlock value from passive infrastructure assets. In 2022, the company completed the sale of 5,701 towers for $412 million. Since 2013, IHS has acquired MTN towers in Côte d’Ivoire, Cameroon, Zambia, Rwanda, and Nigeria, as well as towers from other providers across additional markets.

Renewed interest in telecom towers reflects the continued growth of Africa’s tower sector. According to a 2025 report by Mordor Intelligence, accelerated 4G and 5G deployments are driving operators to expand network sites, particularly in major cities such as Lagos, Nairobi, and Johannesburg. This trend is generating strong demand for colocation services and new infrastructure.

Data from the International Telecommunication Union (ITU) shows that 4G and 5G penetration rates stand at 75.2% and 11.8%, respectively, while 2G and 3G coverage remains high at 94.1% and 88.8%.

At the same time, growing smartphone adoption and increasing data consumption—driven by streaming, social media, and mobile payments—are raising the data volume per subscriber. This evolution requires more robust tower infrastructure capable of hosting multiple operators. In addition, government mandates and universal service funds are supporting tower construction in rural and hard-to-reach areas, ensuring minimum revenues and reducing risks for TowerCos.

The market is currently led by major players such as American Tower Corporation, Helios Towers Plc, SBA Communications Corporation, and Pan African Towers. Other telecom groups have also entered the sector, including Axian Telecom through its TowerCo of Africa (TOA), active in Madagascar, the DRC, Uganda, and Tanzania. Meanwhile, Indus Towers, largely owned by Bharti Airtel, announced in September 2025 its expansion into Africa, beginning with Nigeria, Uganda, and Zambia.

Mordor Intelligence estimates the African telecom tower market will reach $4.03 billion in 2026, growing at an average annual rate of 3.35%, and expanding to approximately $4.75 billion in the coming years.

MTN Financial Performance

MTN Group reported revenue of 188 billion rand in 2024, representing a 15% year-on-year decline. The company also posted a net loss after tax of 11.2 billion rand in 2024, compared with a profit of 4 billion rand in 2023.