MTN Group, Africa's leading mobile network operator, is in discussions to acquire IHS Towers, taking it private and delisting it from the New York Stock Exchange. This deal, if finalized, would give MTN full control of a significant telecommunications infrastructure provider across multiple African markets, potentially impacting other operators who currently lease tower space from IHS.
On February 17, MTN Group, Africa’s largest mobile network operator,The deal, which will take IHS private and delist it from the New York Stock Exchange, marks a significant shift in Africa’s telecom infrastructure landscape.
by IHS Holding Limited, the parent company of IHS Towers, that discussions were ongoing with MTN to acquire the remaining shares not already owned by the telecom giant. IHS builds, owns and operates telecommunications towers that mobile network operators lease to provide their services.For years, operators sold their towers to independent firms like IHS to unlock capital and reduce operating costs, then leased the sites back under long-term agreements.multiple operators to co-locate on shared sites, accelerating coverage expansion and lowering duplication of infrastructure.to acquire 5,709 of MTN’s South African towers for over $400 million in a sale-and-leaseback deal.The transaction, completed in 2022, expanded IHS’s footprint in Africa’s most industrialised economy.HOW THE ACQUISITION COULD IMPACT OTHER OPERATORS If MTN assumes full control of IHS, it moves from being a tenant and minority shareholder to the outright owner of one of the industry’s most strategic infrastructure platforms.For operators like Airtel and T2, IHS towers are critical infrastructure, even though the leasing company said T2 agreed to vacate its sites starting from the third quarter of 2025.Should the acquisition be completed, MTN Group will own overA broader look shows MTN will take ownership of over 28,700 towers, owned by IHS, across five key markets in Africa, comprising South Africa, Cote d’Ivoire, Cameroon, Zambia, and Nigeria — and serving 10 out of 13 mobile network operators in Africa.Breakdown of IHS towers in Africa shows that Nigeria accounts for 15,942 sites, Cote d’Ivoire 2,678, Cameroon 2,470, Zambia 1,918, and South Africa 5,696. Industry experts say the key concerns for other MNOs revolve around future lease pricing, access priority, and operational independence.Tony Izuagbe Emoekpere, chairman of the Association of Telecommunications Companies of Nigeria , told TheCable that other MNOs, which rely heavily on leased tower space to expand coverage, could face reduced negotiating leverage if infrastructure ownership becomes more concentrated.The deal has sparked whispers of monopoly, given MTN’s dominant subscriber base and IHS’s extensive footprint.Speaking to TheCable, Emoekpere said ownership change does not automatically translate to monopolistic control.“In other countries where this has happened, the infrastructure company continues to operate independently from the MNO. It’s just the ownership structure that changes.” According to the telecom expert, tower companies remain commercially motivated to serve multiple tenants. “If you are providing infrastructure, the more tenants you have, the more profitable you become. So economically, it does not make sense to shut out other operators,” he said. Emoekpere added that IHS is not the only tower company in Nigeria, noting that other MNOs, including Airtel, also utilise additional tower infrastructure providers.“This is not entirely new. What has happened is that they have increased their shareholding to full ownership.” While the deal has raised monopoly concerns, IHS has an industry rival in Africa, American Tower Corporation , whichWHY IS FG REVIEWING THE DEAL?Bosun Tijani, minister of communications, innovation and digital economy, said the government must assess the acquisition to ensure it aligns with Nigeria’s telecom development objectives and does not undermine competition or consumer protection.“Every transaction of this magnitude must pass certain tests. It’s not peculiar to Nigeria. Governments assess such deals to ensure national interest is protected,” he said.A telecom executive, who does not want to be named, told TheCable that MTN’s decision is partly driven by past frustrations over tower management and response times during network outages.“There were concerns about poor management of towers and delays in response during downtimes.” Owning the towers, the executive added, would allow MTN to have greater operational control and faster resolution of connectivity issues.“One of the major issues raised by regulators has been quality of service,” he said. “Being in control of the infrastructure could give MTN more decision-making power to manage service delivery, since their subscribers are ultimately affected.”With full infrastructure control, MTN may no longer attribute service disruptions to third-party tower management. More so, greater ownership could translate into faster maintenance response, improved uptime, and potentially stronger network performance.“Subscribers will expect improved quality of service.” However, experts caution that improved service will depend on strong regulatory oversight to ensure fair access for competing operators. From a financial standpoint, an industry expert, who spoke anonymously, said the acquisition could improve MTN’s long-term margins by eliminating lease payments to third parties and creating more predictable cash flows.“If properly regulated, could benefit Nigeria through increased infrastructure investment, job creation, faster broadband rollout, and stronger control over strategic telecom assets,” he said
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