MTN Group and Airtel Africa, two of Africa’s leading telecommunications companies, recently entered into a strategic network-sharing partnership in Nigeria and Uganda, with plans to explore similar arrangements in other markets like Congo-Brazzaville, Rwanda, and Zambia.
This collaboration involves pooling infrastructure such as towers, base stations, and fiber networks, rather than each company building and maintaining its separate systems. The agreement aims to reduce operational costs, expand coverage—especially in underserved and remote areas—and improve service quality for their combined customer base.
This move reflects a practical response to the economic and operational challenges both companies face. In Nigeria, for instance, the naira’s devaluation has driven up the cost of importing equipment and expanding networks, contributing to MTN Nigeria’s US$250 million (approx. NGN384.85 billion) post-tax loss and a 40.3% revenue drop for Airtel Nigeria over nine months in 2024.
By sharing infrastructure, they can cut capital and operational expenses, redirecting funds to repay debts (like the US$1.2 billion (approx. NGN1.85 trillion, UGX4.4 trillion) in foreign loans prioritized in 2024) or enhance services instead of duplicating costly builds. It’s a shift from the traditional telecom model where competition meant outbuilding rivals in infrastructure to gain market share.
The partnership doesn’t eliminate competition entirely—they’ll still vie for customers through branding, services, and offerings—but it redefines it. Collaboration on the “hardware” of networks frees them to focus on the “software” of customer experience, like better data plans or digital financial services.
This could accelerate digital and financial inclusion across Africa, as shared resources allow faster deployment of reliable connectivity to areas previously uneconomical to reach alone. Leaders from both companies, like MTN’s Ralph Mupita and Airtel’s Sunil Taldar, have emphasized this dual benefit: cost efficiency and broader access.
Looking ahead, this could signal a new trend in the telecom industry, particularly in regions with high infrastructure costs and economic volatility. If successful, it might encourage other operators to join similar pacts, creating a more interconnected yet still competitive landscape. The focus would shift from who owns the most towers to who delivers the best value to users.
However, it’s not without risks—coordination complexities, regulatory hurdles, or potential consumer backlash over perceived “monopoly” vibes (as some X posts have hinted in past contexts) could complicate things. Still, for now, this partnership suggests that in Africa’s telecom future, collaboration might just be the smarter play over cutthroat competition.
In a continent like Africa, where economies are growing rapidly yet remain fragile—characterized by uneven GDP growth (projected at 4.1% in 2025 by the African Development Bank), currency volatility, and infrastructure gaps—partnerships like the MTN Group and Airtel Africa network-sharing deal can significantly bolster technological advancement, but their success hinges on execution and broader ecosystem support. Here’s how they contribute and where they might fall short.
First, these partnerships optimize resource use in a capital-scarce environment. Africa’s telecom sector requires massive investment—estimated at US$100 billion (approx. NGN153.9 trillion, UGX366.12 trillion) by 2030 to achieve universal broadband, per the World Bank. By sharing towers, base stations, and fiber, MTN and Airtel slash redundant spending, freeing up funds to deploy advanced tech like 4G or 5G in rural areas where 60% of Africans live but only 34% have internet access (ITU, 2024). This cost-sharing model accelerates coverage expansion without draining balance sheets already strained by debts or forex losses, like those seen in Nigeria’s telecom market in 2024.
Second, they enhance efficiency, which is critical for fragile economies where margins are thin. Shared networks reduce energy costs—a big deal when diesel for tower generators is a major expense amid rising fuel prices—and streamline maintenance.
This can lead to better uptime and service quality, fostering trust in digital tools like mobile money (used by 435 million Africans in 2023, per GSMA), which drives economic activity in informal sectors. In turn, reliable tech encourages adoption of innovations—think e-health, agritech, or online education—that can leapfrog traditional development hurdles.
Third, collaboration can attract investment and expertise. A joint infrastructure project signals stability and scale to global players, potentially drawing in vendors like Nokia or Huawei to roll out cutting-edge equipment faster. It also aligns with regulatory pushes for efficiency, as seen in Nigeria’s NCC encouraging such deals, which could ease licensing burdens and spur policy support for tech upgrades.
However, full technological advancement isn’t guaranteed. Coverage might expand, but without affordable devices or data plans, adoption lags. Partnerships focus on backend infrastructure, not consumer access, so rural users might still face barriers.
Also, if savings aren’t reinvested into R&D or local tech talent (Africa’s digital skills gap affects 70% of firms, per IFC), the continent risks staying a consumer of imported tech rather than a creator. Regulatory misalignment across borders—say, differing spectrum policies—could also slow cross-market scaling.
For delicate economies, the real win is if these partnerships spark a virtuous cycle: wider coverage boosts usage, usage grows revenue, and revenue funds next-gen tech like AI-driven networks or satellite broadband. Without deliberate focus on affordability, skills, and innovation, though, they’ll advance infrastructure more than the broader tech ecosystem. It’s a strong step, but not the whole staircase.
Startups, especially those in Africa or other emerging markets, can draw several practical lessons from the MTN Group and Airtel Africa network-sharing partnership. It’s a case study in navigating resource constraints, competition, and growth in a challenging economic landscape.
Here’s what they can take away:
- Collaboration can beat solo hustle
MTN and Airtel, despite being rivals, pooled infrastructure to cut costs and expand reach. Startups often burn cash trying to outdo competitors alone—think duplicative marketing or tech builds. Partnering with a competitor or complementary player (say, a fintech teaming with a logistics startup) can share the load, letting each focus on their strengths. The lesson? Strategic alliances can stretch limited resources further than going it alone.
- Focus on core value, not just ownership
The telcos didn’t merge—they kept competing on services while sharing the backend. Startups can learn to prioritize what truly differentiates them (e.g., user experience, unique features) over owning every piece of the puzzle. Renting cloud servers instead of building data centers, or using third-party APIs, mirrors this. It’s about delivering value efficiently, not controlling every asset.
- Scale through shared foundations
By combining networks, MTN and Airtel reached underserved areas faster than solo efforts could. Startups can replicate this by tapping into existing platforms—think marketplaces like Jumia for e-commerce or M-Pesa for payments—to scale without reinventing the wheel. The takeaway is to leverage what’s already there to grow reach and impact quickly.
- Adapt to economic realities
Africa’s volatile currencies and high infrastructure costs forced this partnership. Startups need to read the room—whether it’s inflation, forex shortages, or regulatory shifts—and pivot accordingly. Flexibility, like pivoting from capex-heavy models to leaner ops, can be a survival skill in fragile economies.
- Think long-term ROI over short-term wins
The deal sacrifices some competitive edge (exclusive coverage) for bigger gains (cost savings, wider market). Startups often chase quick metrics—user signups, hype—but this shows the value of betting on sustainable growth. It’s a reminder to weigh trade-offs: a smaller slice of a bigger pie can beat owning a tiny pie outright.
- Execution matters more than the idea
Network-sharing isn’t new, but MTN and Airtel made it work through clear agreements and trust. Startups can dream up partnerships, but success lies in the nitty-gritty—contracts, aligned goals, and communication. A good plan poorly executed flops; this partnership’s early signs suggest they’re nailing the details.
For startups, the big picture is this: in resource-tight settings, collaboration isn’t a sign of weakness—it’s a power move. It’s about finding ways to grow without breaking the bank, staying nimble, and focusing on what keeps customers coming back. MTN and Airtel aren’t just sharing towers; they’re showing how to thrive in tough terrain—something every startup scrapping for traction can learn from
