MTN Calls for Rethinking Tax Structure

Telecommunications giant MTN has called for a reconsideration of the country’s tax structure to enable more investment in critical infrastructure in the mobile telephony industry. Speaking at the inaugural 3i Africa Summit in Accra, MTN Ghana CEO Stephen Blewett highlighted the adverse effects of high taxes on the mobile industry and urged policymakers to review the tax levels in the sector.

According to Blewett, taxes currently consume about 30% of industry revenues, posing a significant barrier to critical infrastructure and other investments. He emphasized that without the right fiscal incentives, funding for modernizing and expanding digital infrastructure, including technologies like 5G, would not materialize. Blewett stressed the importance of not sacrificing long-term growth for short-term gains.

The 3i Africa Summit, themed “Unleashing Africa’s Fintech and Digital Economic Potential,” brought together leaders, policymakers, regulators, innovators, and change-makers from across Africa to foster collaboration, drive innovation, and build momentum for transforming the continent’s digital landscape. MTN Ghana and MobileMoney Ltd were key sponsors of the three-day summit, which was a collaborative effort of the Bank of Ghana, the Development Bank of Ghana, and the Monetary Authority of Singapore.

Blewett noted that the success of services like MTN’s Mobile Money and Vodafone and Safaricom’s M-Pesa demonstrates fintech’s ability to revolutionize business in Africa and provide millions with access to essential financial services. He urged policymakers and regulators to strike the right balance between investment, innovation, and revenue generation, highlighting the need for concerted and sustained support from all stakeholders.

Despite the gains in digital revolution, Blewett pointed out that Africa lags far behind the world in mobile adoption and innovation due to constraints such as low infrastructure coverage, data affordability, smartphone accessibility, and lack of digital skills training. He called for efforts to remove these barriers, improve data coverage and affordability, especially in rural and low-income areas, and enhance digital literacy to bridge the usage gap.

Blewett concluded by urging business leaders to invest in new products and services that enable affordable remittance solutions, digital payments, savings, lending, insurance, and investment products. He emphasized the importance of sustainability and called on businesses and policymakers to prioritize Environment, Social, and Governance (ESG) practices in their commercial activities, including reducing carbon footprints through investments in renewable energy and energy-efficient technologies.