How a $100bn funding gap is forcing Africa’s telecom rivals to become partners

Africa’s telecom giants are increasingly turning competitors into partners as a $100 billion digital infrastructure funding gap makes it impossible for any single operator to finance the continent’s broadband, 5G, artificial intelligence (AI), cloud computing and financial technology ambitions alone.

The shift marks one of the biggest changes in Africa’s telecom industry in decades. Operators that once spent billions building separate towers, fibre networks and transmission systems are now pushing for shared infrastructure models, arguing that collaboration has become essential for survival and growth in the digital economy.

Leading the campaign is MTN Group, Africa’s largest mobile operator, which says the traditional telecom model of competing through ownership of physical infrastructure is becoming increasingly unsustainable.

Speaking on the future of digital infrastructure in Africa, Ebenezer Asante, MTN Group senior vice president, told Semafor that operators should continue to compete on services and innovation, but ownership of underlying infrastructure should increasingly be shared.

“That layer of digital infrastructure is not one that requires competition. It’s one that requires shared ownership,” Asante said.

His comments reflect a growing consensus across the industry that Africa’s next phase of digital transformation cannot be funded through the old model where every operator builds its own network.

Industry estimates and World Bank projections place Africa’s digital infrastructure funding deficit at approximately $100 billion. At the same time, operators are under pressure to expand broadband coverage, deploy 5G networks, build data centres, improve rural connectivity and support emerging AI applications.

MTN, which invests roughly $2 billion annually in network expansion, acknowledges that no single balance sheet can support the continent’s growing infrastructure requirements alone.

As a result, some of Africa’s biggest telecom rivals are beginning to work together.

One example is the African Group of Six, an alliance comprising MTN, Vodacom, Airtel Africa, Orange, Axian Telecom and Ethio Telecom.

The coalition, which represents about 60 percent to 65 percent of Africa’s mobile subscribers, is lobbying governments and regulators to encourage infrastructure sharing, harmonise regulations and reduce barriers to digital investment across the continent.

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Nigeria already showing signs of the new model

Nigeria, Africa’s largest telecom market, is increasingly becoming a testing ground for the collaborative approach being advocated by operators.

Recall MTN Nigeria and Airtel Africa announced plans to deepen infrastructure-sharing arrangements across selected African markets. The agreement is aimed at reducing network deployment costs, improving coverage and accelerating access to digital services while avoiding unnecessary duplication of infrastructure.

Industry observers view the partnership as a significant departure from the traditional rivalry that has characterised Africa’s telecom sector for decades.

Similarly, MTN Nigeria entered into a national roaming and infrastructure-sharing agreement with T2, formerly known as 9mobile. The arrangement allows T2 subscribers to access MTN’s extensive network infrastructure in areas where coverage is limited.

Analysts say such partnerships reflect a growing recognition that infrastructure sharing is no longer merely an efficiency strategy but an economic necessity.

For smaller operators, sharing infrastructure provides access to wider coverage without massive capital expenditure. For larger operators, it offers an opportunity to maximise returns on existing investments while expanding digital access.

The economics behind infrastructure sharing are becoming increasingly compelling.

For years, operators often built parallel fibre routes and cell towers serving the same locations. While this encouraged competition, it also created duplication and significantly increased deployment costs.

As demand shifts from voice services to high-capacity data networks, cloud computing and AI-driven applications, operators are finding it difficult to justify multiple investments in identical infrastructure.

Industry leaders argue that telecom infrastructure should increasingly be treated as a public utility, similar to roads, railways and power networks, where multiple service providers can operate over shared assets.

This approach would allow operators to focus their investments on innovation, customer experience and digital services rather than repeatedly building the same physical infrastructure.

Dig-Once policy gains momentum

The growing push for infrastructure sharing is also influencing broadband policy discussions in Nigeria.

Stakeholders in the telecom and digital economy sectors are advocating the adoption of a nationwide Dig-Once policy, which would require fibre ducts to be installed whenever roads are constructed or rehabilitated.

The policy would enable multiple operators to share underground infrastructure instead of repeatedly excavating roads to lay separate fibre cables.

The proposal has gained renewed attention as the Federal Government prepares to implement Project BRIDGE, a $2 billion broadband initiative aimed at expanding Nigeria’s fibre network from approximately 35,000 kilometres to 125,000 kilometres by 2030.

Industry experts believe Dig-Once could become a critical enabler of the project.

According to stakeholders, poor coordination in road construction and utility deployment currently leads to thousands of fibre cuts annually, causing network outages and increasing maintenance costs.

Data presented at industry forums indicate that about 60 percent of network disruptions in Nigeria are linked to fibre cuts caused by road construction activities.

Advocates argue that integrating fibre ducts into road designs from the planning stage would reduce costs, protect infrastructure and accelerate broadband deployment nationwide.

The policy is also seen as complementary to the broader infrastructure-sharing agenda being promoted by telecom operators across Africa.

Beyond infrastructure: Closing Africa’s digital divide

Infrastructure sharing is only one part of the industry’s broader agenda.

Operators estimate that more than 700 million Africans live within coverage areas of mobile networks but remain offline due to affordability challenges.

To address this gap, the African Group of Six partnered with the GSMA to launch a programme aimed at making entry-level 4G smartphones available for approximately $40.

The initiative targets countries including Nigeria, Ethiopia, Rwanda, Tanzania, Uganda and the Democratic Republic of Congo.

Operators are also pushing governments to remove import duties and luxury taxes on entry-level smartphones to make internet access more affordable for low-income populations.

At the same time, telecom companies are seeking regulatory reforms that would allow digital services, including fintech platforms, to scale more easily across borders.

Industry leaders argue that fragmented regulations are slowing innovation and increasing costs in a continent that already faces significant infrastructure deficits.

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Balancing collaboration and competition

Despite growing support for infrastructure sharing, concerns remain among regulators and consumer advocates.

Competition authorities worry that excessive collaboration could strengthen dominant operators and reduce market competition if not properly regulated.

Some industry groups have called for strict open-access rules to ensure smaller operators are not excluded from shared infrastructure arrangements.

However, many analysts believe the greater risk lies in maintaining the status quo.

With infrastructure costs rising, investment capital becoming more expensive and demand for digital services growing rapidly, telecom executives argue that collaboration is increasingly the only practical path forward.

For Africa, the implications extend beyond the telecom sector.

Digital infrastructure is now regarded as the foundation for economic growth, financial inclusion, e-commerce, education, healthcare and AI development.

As governments pursue ambitious digital transformation agendas, industry leaders say success will depend not only on how much infrastructure is built, but on how efficiently it is deployed and shared.

The emerging reality is that Africa’s next digital leap may be driven less by competition over towers and fibre cables and more by strategic partnerships among the companies that once competed to own them.