Ralph Mupita, chief executive officer of MTN Group, warned today that US President Donald Trump’s tariff increases and the ensuing trade war are poised to curb capital expenditure by telecommunications operators worldwide.
Speaking at a press briefing at MTN’s Fairland headquarters in Johannesburg, Mr. Mupita cautioned that higher import duties on electronic goods will drive up the cost of radio equipment and complicate supply‑chain planning.
“It is still too early to gauge the full impact, but we expect global growth to slow,” he said, adding that sustained tariffs will keep inflation above its natural rate. He noted that companies must now scrutinize their supply chains and the origin of critical components to anticipate cost pressures.
MTN has earmarked roughly US$2 billion for network infrastructure investment in the 2025 financial year, which ends on December 31. Thanks to advanced planning and long‑standing agreements with equipment vendors, Mr. Mupita believes the group will be largely insulated from immediate shocks. “Our capital‑spend deals are mostly concluded, so we should be shielded from sudden supply‑chain disruptions this year,” he explained.
A key advantage for MTN is its reliance on Chinese suppliers such as Huawei Technologies. With average revenue per user of around US$5 across Africa—far below the US$60 plus that European operators enjoy—the group opts for more affordable kit rather than pricier alternatives from vendors like Ericsson.
Mr. Mupita echoed the view of investment bank JPMorgan that the risk of a US recession has risen in the wake of Trump’s tariffs. He warned that any downturn in the world’s largest economy could ripple through emerging markets, potentially threatening MTN’s anticipated recovery in Nigeria, its biggest market by revenue.
Nigeria accounts for about 40 percent of MTN’s total sales, with South Africa contributing roughly 30 percent. In recent months, regulatory reforms and stronger foreign‑exchange reserves have improved dollar liquidity in Nigeria, easing the repatriation of dividends. Yet, sustained inflation and currency devaluation remain a concern.
By urging telecom operators to monitor their supply chains and by securing favourable contracts in advance, MTN aims to mitigate the fallout from international trade tensions. As the industry awaits clearer signs of economic impact, the group’s strategy underscores the importance of proactive planning and diversified sourcing in a volatile global environment.
