Telecel Group, the phone carrier buying up assets in Africa, said it’s focusing on winning market share in Ghana, which could become a key pillar of the company’s regional expansion. Telecel, which entered Ghana last year after acquiring the business from Vodafone Group Plc, is concentrating on expanding its fintech offering and targeting underserved segments of the population, Chief Executive Officer Moh Damush said in an interview in Accra. Ghana is the largest market where Telecel operates and is characterized by strong demand for data services and solid growth potential. “We believe Ghana could be an excellent hub to serve surrounding markets,” Damush said. “There could be opportunities to expand into Central Africa, but at this time our growth strategy is focused on West Africa.”
Telecel is competing with MTN Group, Africa’s largest wireless carrier by revenue. The South African telecom operator is particularly dominant in Ghana, a West African country with a population of 33 million and widespread mobile-phone usage. MTN controls 72% of the voice market and 79% of data subscriptions, according to a report published last year by the National Communications Authority. Telecel Ghana follows with 19% of voice and 13% of data subscriptions, while a smaller third carrier, AT, accounts for the remainder. Although Ghana’s telecommunications regulator has attempted to reduce MTN’s dominance by introducing a price floor and restricting promotions, local competitors have struggled to match MTN’s level of network investment. “A major challenge is that new investors need to spend substantial amounts on infrastructure,” said Sam Aluko, a partner at KPMG in Ghana.
When Telecel acquired Vodafone Ghana, MTN operated 2,000 more 4G towers. Since the acquisition, Telecel has added 500 additional sites over the past year, according to Damush. The Government of Ghana holds a 30% stake in Telecel’s Ghanaian unit. The company will consider a public listing once it strengthens its market position. Expanding market share in Ghana is part of Telecel’s broader strategy to increase its footprint across the African continent. The company has been actively acquiring assets, having entered Liberia in 2021 and currently working to finalize acquisitions of MTN units in Guinea-Bissau and Guinea to reinforce its West African portfolio. Telecel also operates in the Central African Republic and the Democratic Republic of Congo.
To further support its regional strategy, Telecel Group plans to focus its next phase of acquisitions on fintech companies. “These won’t necessarily be limited to transactional fintech,” Damush said. “We are also looking at micro-financing, micro-wealth management, and micro-investment companies,” with the goal of integrating Telecel’s mobile-money services into these platforms.
