MTN Group, the largest mobile operator in Africa, has announced plans to invest $1 billion in Ghana over the next five years.
The move comes after the Ghana Revenue Authority exempted the company's Ghanaian unit from $773 million in tax claims related to the alleged under-declaration of revenue between 2014 and 2018.
According to MTN Chief Executive Officer Ralph Mupita, the company remains committed to investing in Ghana despite current macroeconomic challenges. The investment will be focused on 5G technology, which the company believes will drive growth across sectors.
This investment is a significant boost to Ghana's economy, which is facing its worst economic crisis in a generation due to capital outflows, debt-servicing challenges, and rapid currency depreciation. Inflation remains high, with consumer inflation standing at 53.6% year-on-year in January.
MTN's investment in Ghana is part of its broader plan to expand across Africa, including in Nigeria, where the company has been in discussions with regulators regarding the release of payment services. The company is also planning to increase its stake in its Ethiopian unit, where it aims to raise $600 million in a share sale.