Why Africa’s telcos need reinvention, by PwC
Telecom operators in Africa are under growing pressure as commoditisation, digitisation and intensified competition are reshaping the industry faster than the dot‑com era. This accelerating change across the industry is
Telecom operators in Africa are under growing pressure as commoditisation, digitisation and intensified competition are reshaping the industry faster than the dot‑com era.
This accelerating change across the industry is a clear signal that reinvention can’t wait, PwC’s latest report, ‘Reinventing Telecoms: Beyond the Buzzwords’, released over the weekend, stated.
The report indicated that across the continent, leading telecom operators were reinventing how they structure and operate their businesses to accelerate growth, strengthen investor confidence, and build more agile, commercially empowered units.
The report, which drew on recent PwC insights, unpacks what practical, sustainable reinvention really look like for Africa’s operators—moving beyond structural separation to building empowered, commercially viable, investor‑attractive business units (BUs).
The PwC report came as MTN Nigeria embarked on N1 trillion capital expenditure (CAPEX) drive, backed by its record-breaking 2025 financial performance.
The company’s audited results revealed a historic 108.9 per cent increase in EBITDA to N2.7 trillion and a 215.5 per cent rise in free cash flow to N1.2 trillion, providing the exact financial muscle necessary for this aggressive network expansion.
According to the firm’s strategic blueprint, without the ability to generate strong returns, the N1 trillion CAPEX required to maintain the network and deploy advanced technologies would simply not exist.
This accelerated network investment is already yielding significant dividends in consumer usage and reliability. The 2025 results showed a 74.5 per cent surge in data revenue alongside a 42.1 per cent increase in voice revenue. Furthermore, active data subscribers grew by 11.6 per cent to hit 53.2 million, underscoring the robust commercial momentum and the continuous public demand for high-quality internet services powered by fresh CAPEX.
Chief Executive Officer, MTN Nigeria, Karl Toriola confirmed that the restoration of positive retained earnings and a highly resilient balance sheet directly supported this accelerated network investment.
He said: “2025 marked a significant turning point in our business performance, with a return to profitability, stronger free cash flow, and the restoration of positive retained earnings and shareholders’ funds, enabling the resumption of dividend payments. Our balance sheet resilience - underpinned by robust operating performance, disciplined capital allocation, and reduced foreign currency exposure - supported accelerated network investment to enhance quality of service and user experience, positioning us to sustain growth and deliver attractive long term shareholder returns”.
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PwC, in the report, stated two priorities stand out: building strategic, separate, specialised business units (BUs) and empowering those BUs with the right attributes to deliver value.
The report authored by Telecommunications Leader, PwC South Africa, Elmo Hildebrand, and Director/Telecommunication Specialist, PwC South Africa, Basheena Bhoola, noted that leading telecom companies are shifting to modular BUs—a structure it called the puretone model.
The puretone model, they explained, is about simplifying telecom companies by breaking them into focused, independent business units so each can perform better and create more value.
It added that the model is a move away from vertical integration towards clarity, sharper commercial focus, and capital efficiency.
“These BUs cover a wide range of distinct roles within the telecom’s ecosystem. Some own and monetise infrastructure such as towers, fibre, and data centres.
“Others operate networks and wholesale capacity. There are also digital platforms that orchestrate and sell white‑label services, for example enabling brands to launch virtual operators.
“Some specialise in building bespoke technology and connectivity solutions for enterprises. These focused BUs attract specialist investors and expand the ways telecoms reach and serve new markets,” the report further stated.
It, however, said structure alone won’t deliver results. “Success depends on how each BU is empowered to act, invest, and compete. Africa’s fintech playbook shows the impact of getting it right,” PwC said.
According to PwC, Africa’s telecoms led the world in fintech and mobile money innovation, pointing out that these solutions succeeded as purpose‑built BUs with the freedom to innovate, the independence to scale, and a clear mandate to solve genuine market needs for the consumer.
“It showed what’s possible when operators design new businesses with autonomy, focus, and clear strategic intent from the outset.
Yet infrastructure spinoffs and digital platforms haven’t delivered the same uplift, even when they’ve been structurally separated. This leaves a clear question: what separates the puretones that outperform from those that stall?” PwC stated.
The multinational professional services company said it assessed more than 30 operators globally using PwC’s outside-in reinvention readiness diagnostics, which highlights the characteristics that define whether a BU is set up to win.
The six signals that define reinvention, according to PwC, include clarity in mission: is your value story clear and compelling? Accountable leadership: do your leaders have the authority to deliver? Profit and loss (P&L) integrity: do you have full visibility over BU performance?
Other signals are ability to invest: can you allocate capital where it matters? Capability autonomy: does each BU control its own talent, tech and processes? Competitive viability: can each BU compete without internal support?
“Together, these signals show where an operator sits on the reinvention curve—Reframe, Reconfigure or Reinvent—and how Africa’s telecoms measure against their global peers,” PwC said.
It, however, said with the right focus, Africa’s operators have a clear opportunity to unlock substantial value and accelerate into the “reinvent” stage and strengthen their market position with improved financial performance.
It pointed out that its research shows that operators who make this shift capture meaningful strategic and valuation advantages.
“Infrastructure separation is underway, and digital platforms are gaining momentum, yet leadership autonomy and financial transparency remain elusive.
“Capital is still constrained, and much of the region’s value sits inside vertically integrated portfolios that no longer reflect how the market grows,” PwC said
The report said global peers show what’s possible when reinvention goes further. For instance, Telstra’s InfraCo spin-off drove a 35 per cent share price uplift.
Jio Platforms also attracted over $20 billion in investment and increased their enterprise valuation multiple significantly by building a digital ecosystem that spans payments, retail, and media.
“In fact, telecoms in the “reinvent” stage enjoy valuation premiums of 30 per cent to 50 per cent over their more traditional counterparts,” PwC emphasised
“Africa’s telecom leaders can unlock value by empowering BUs to act with clarity, scale, and commercial freedom, directing capital to where it delivers returns and reshaping portfolios to release trapped value. It’s a moment for decisive leadership,” the report concluded.
