MTN Group to Invest $1 Billion in Ghana for 5G Rollout

After resolving its tax dispute with the Ghanaian government, MTN Group, the largest mobile network operator in Africa, has announced its intention to invest US $1 billion in Ghana within the next five years. The telco wants to invest in expanding operations in Ghana for the next five years.

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Group chairman and CEO Ralph Mupita made the announcement, and it comes after just two weeks after the end of a tax dispute with Ghanaian authorities. The tax claim was initially issued after the revenue authority audited the company from 2014 to 2018 and claimed that MTN had underdeclared its revenue by about 30% during the period. However, the Ghanaian government eventually exempted MTN Ghana from tax claims worth about USD 773 million.

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“To be sure, macroeconomic conditions are very difficult in the near term. That said, we are focused on the medium to long term, and we are seeing growth,” said Mupita in a statement.

5G Launch and Expansion

According to Mupita, most of the funds would be used to launch and expand 5G mobile technology in the nation. The company’s 4G network covers about 99.3% of the population but cannot keep up with the anticipated growth.

Tax demand from GRA

MTN was facing a tax demand for $665 million from the Ghana Revenue Authority (GRA), the South African telecoms company said in January it “strongly disputes”.

The GRA stated that MTN had under-declared its income for the years 2014 to 2018. “MTN Ghana believes that the taxes due have been paid during the period under assessment and has resolved to vigorously defend MTN Ghana’s position on the assessment.”