MTN is spending less on the best network in South Africa

MTN Group cut capital spending on its South African network by 17.1% in the six months to June, to R2.64-billion excluding leases, in a half that saw its prepaid base shrink by about 1.5 million customers and its total subscriber base fall 0.7% year on year to 39.5 million.

The reduction holds on both measures MTN reports. On the IFRS 16 basis used in its segment tables, South African capital expenditure fell 13.5% to R3.3-billion from R3.81-billion.

Group capital expenditure was R19.7-billion excluding leases, down 5% as reported and marginally higher in constant currency. What changed was the allocation. MTN invested R7.34-billion ex-leases in its Nigerian network in the half, 2.8 times the South African figure. Nigerian capital intensity was 20.6%, against 16.6% for the group.

MTN does not publish a capital intensity figure for South Africa. On the basis it uses for the group and for Nigeria — capital expenditure excluding leases as a share of revenue — South African intensity was 10.6% in the half, down from 12.6% a year earlier. That is about half the Nigerian level and below the 15-18% range MTN targets at group level.

Group CEO Ralph Mupita told a media call on Monday the South African reduction was a matter of timing. Capital deployment is seasonal, he said, and MTN expects full-year South African spending of around R7-billion, weighted to the second half. “There is no concern about undercapitalising on South Africa,” he said.

MTN did not specify whether that R7-billion is measured on the same basis as its segment disclosure, which put South African capital expenditure at R8.38-billion for 2025.

“We have had network leadership there for a long time, and we want to defend it,” he said of South Africa. He used similar language about Nigeria, where he said the higher intensity was because MTN continues to defend and expand its network leadership.

The results document supports the phasing argument, though not for South Africa specifically. MTN told shareholders that group cash generation is weighted towards the second half, reflecting the phasing of collections, capital expenditure and the timing of dividend receipts.

The commitments disclosure points the same way. MTN entered 2026 with R42.2-billion of authorised capital commitments for property, plant, equipment and software. It spent R24-billion in the first half on an IFRS 16 basis and had R18.3-billion of authorised commitments remaining at the end of June.

The composition has shifted. Of what remains, R4.7-billion is contracted and R13.6-billion is not. A year earlier the position was close to reversed, with R14.5-billion contracted and R3.1-billion not. Less of the remaining spend is locked into supplier agreements than at the same point last year.

None of that is South African. MTN gives no capital expenditure guidance for its South African business anywhere in the results, and the outlook section for the unit covers prepaid recovery, commercial initiatives and cost reduction without mentioning the network.