Nigeria and Ghana are becoming increasingly important to MTN Group’s financial engine, sending R9.3 billion to the telecom giant in the first half of 2026 as stronger growth in West Africa helped offset sluggish performance in its South African home market.
Ghana contributed R6.6 billion and Nigeria R2.7 billion of the R13.9 billion in cash upstreamed by MTN’s operating companies to the group during the six months ended June, according to its results released on August 24. Together, the two countries accounted for 67 percent of the total, compared with R2.1 billion from South Africa.
The increase in cash transfers is significant for MTN because it comes alongside a sharp improvement in group earnings and gives the company more room to invest and return capital to shareholders.
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MTN’s service revenue rose 17.5 percent in constant-currency terms to R115 billion, while EBITDA before once-off items increased 24.4 percent to R56 billion. The stronger earnings lifted the group’s EBITDA margin to a record level of about 47 percent.
“The Group’s overall performance in the period reflects strong conversion of the commercial momentum we see across our markets into growth in earnings, cashflow and returns,” Ralph Mupita, MTN Group president and chief executive officer, said.
The group’s equity free cash flow rose 32.7 percent to R7 billion, while capital expenditure excluding leases reached R19.7 billion as MTN expanded networks, connected homes and upgraded its technology infrastructure.
The stronger balance sheet has also allowed MTN to approve a share buyback of up to R6 billion, covering about 31 million ordinary shares. The programme is part of its Ambition 2030 strategy, under which the group targets returning 40 percent to 60 percent of equity free cash flow to shareholders through dividends or share repurchases.
Nigeria gains financial weight
Nigeria’s R2.7 billion contribution makes the country one of MTN’s major sources of upstream cash, even though Ghana generated more than twice as much in the period.
The Nigerian business is benefiting from higher demand for mobile data and digital services in a market where consumers and businesses are increasingly shifting spending toward connectivity. The company has also been operating under higher tariffs following the industry-wide adjustment approved by the Nigerian Communications Commission.
For MTN Group, Nigeria offers a combination of scale and growth. The country’s large customer base gives the operator room to expand data consumption and financial technology services, while the resulting cash generation strengthens the group’s ability to fund investments elsewhere.
Ghana’s larger contribution, meanwhile, shows that MTN’s cash generation is not dependent on Nigeria alone. The two West African markets together now provide a substantially larger share of upstream cash than South Africa.
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South Africa trails
MTN South Africa’s service revenue increased only 1.5 percent in the first half, although growth accelerated to 2.3 percent in the second quarter.
Management has been prioritising customer quality and profitability in its large prepaid base rather than pursuing subscriber numbers at the expense of returns. That strategy has weighed on short-term growth but is aimed at improving the economics of the business.
The contrast with West Africa is becoming more visible in MTN’s group results. Growth in Ghana, Nigeria, Uganda and other markets helped drive the 17.5 percent increase in consolidated service revenue, while the South African operation expanded at a much slower pace.
MTN ended June with 317.7 million subscribers across its markets, including more than 179 million active data users.
Mupita said the group had combined revenue growth with stronger profitability and cash generation.
“MTN delivered a strong consolidated first-half performance in 2026, with growth in our subscriber base accelerating in Q2 2026. We combined double-digit service revenue growth with record EBITDA margins, robust free cash flow generation and a resilient balance sheet,” he said.
The first-half results show that MTN’s growth story is becoming less dependent on its home market. With Nigeria and Ghana supplying most of the group’s upstream cash, West Africa is taking a larger role in financing MTN’s expansion and shareholder returns.
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