MTN eyes Telkom SA in renewed merger talks

سلام,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

MTN eyes Telkom SA in renewed merger talks
Telecel to absorb AirtelTigo in $600M rescue plan
Bolt takes VAT battle to Lagos appeal court

MTN eyes Telkom SA in renewed merger talks

MTN Group is dusting off its old playbook and considering another shot at acquiring Telkom South Africa. The move comes three years after talks collapsed over antitrust concerns, but this time, MTN believes the climate may be more favourable. With 298 million subscribers across 15 African markets, the telecoms giant is eyeing Telkom’s 23 million users as a juicy addition to its base.

Telkom hasn’t been shy either; it’s reportedly working with advisers and weighing the possibilities of a deal before the end of 2025. The two companies walked away from the table back in 2022 after regulators raised concerns about market dominance. At the time, merging MTN and Telkom was seen as too risky for competition, with rivals like Vodacom and Cell C already on edge.

But things have shifted. Vodacom recently won approval to take a stake in Remgro’s fibre business, a sign that South Africa’s competition authorities may be more open to large telecom deals than before. That green light has given MTN confidence that this time around, its bid for Telkom might not be dead on arrival.

The numbers tell the story. In South Africa, Vodacom is still top dog with over 52 million subscribers, followed by MTN with nearly 40 million. Telkom sits at 23 million, while Cell C lags behind with just 7.7 million. Bringing Telkom under its wing could push MTN past Vodacom or, at the very least, close the gap in one of Africa’s most competitive telecom markets.

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Telkom itself has seen a revival since the last failed talks. Its share price has climbed more than 40% since 2022, and the company is now valued at about $1.4 billion. For MTN, the deal is as much about growth as it is about cutting down competition, while sharpening its focus on a two-horse race with Vodacom.

The stakes are high. South Africa’s telecom industry is projected to hit $10.43 billion by the end of 2025, growing to $12.28 billion by 2030. With that kind of money on the table, MTN wants to ensure it’s not left behind. To strengthen its hand, the group has even put former Telkom executive — and current CFO — Tsholofelo Molefe in charge of mergers and acquisitions. If a deal goes through, it could reshape South Africa’s telecom landscape for years to come.

Telecel to absorb AirtelTigo in $600M rescue plan

Ghana’s government is pushing ahead with plans to merge two struggling telecom operators — Telecel and AirtelTigo — in a bold attempt to shake up the local telecom market. The move is designed to give MTN Ghana, the undisputed giant of the industry, some real competition after years of dominance.

If all goes according to plan, Telecel will fold AirtelTigo’s 3.2 million subscribers into its base. That would give the combined company roughly 26% market share. Still, it’s a steep climb when you consider MTN currently controls nearly 79% of the market as of April 2025.

Communications Minister Samuel Nartey George says the merger is simply about survival. AirtelTigo has been bleeding money, with losses of more than $10 million in just eight months. To turn things around, the government has put a $600 million investment plan on the table, to be spread over four years. The money is expected to come from spectrum sales, private sector contributions, and policy support.

This isn’t Ghana’s first experiment with consolidation. Airtel and Tigo actually merged back in 2017, but the venture quickly ran out of steam. By the end of 2024, AirtelTigo’s share had shrunk to just under 8%, down from more than 25% six years earlier. Telecel, even after scooping up Vodafone Ghana, is still below the 20% mark.

There are other hurdles, too. AirtelTigo’s credit rating sits at B3 — basically signalling high default risk — while the merger will require a complex technical migration and staff restructuring that officials say should be wrapped up by the end of 2025.

Meanwhile, MTN isn’t sitting still. The market leader has pledged to invest $1 billion in its Ghana operations, upgrading networks and services, and has already seen revenues jump nearly 40% in the first half of this year. Even if the merger strengthens Telecel-AirtelTigo, it’ll take more than fresh capital to close the gap with a powerhouse like MTN.

Bolt takes VAT battle to Lagos appeal court

Bolt isn’t giving up its long fight with Nigeria’s tax man. Per Technext, the ride-hailing company has now taken its VAT battle with the Federal Inland Revenue Service (FIRS) to the Lagos Court of Appeal, challenging a June ruling that backed FIRS’ authority to slap 5% VAT on food and transport services provided via its platform.

At the heart of the appeal is a big question: can Bolt really be held responsible for collecting VAT from drivers and food vendors who technically run their own businesses? Bolt argues no, saying the court misread Section 10 of the VAT Act, which, in its view, only applies to foreign suppliers, not local gig workers using its app.

The company’s lawyer, Elvis Asia, said the judgment puts an unfair burden on ordinary Nigerians, essentially taxing drivers and vendors who earn far below the ₦25 million threshold. “Bolt doesn’t even own the cars or employ the drivers,” the company added, insisting it is just a digital intermediary without a physical presence in Nigeria.

This fight isn’t new. Bolt first took the matter to the Tax Appeal Tribunal in 2022, where it lost. It tried again at the Federal High Court in Lagos in 2025 and lost again. Now, with the appeal, it’s hoping the tide will turn. But until the Appeal Court fixes a hearing date, the FIRS ruling stands.

The dispute dates back to 2019, when the Buhari administration backed FIRS’ move to impose a blanket 5% VAT on online transactions. That directive swept in nearly everyone — ride-hailing companies like Bolt and Uber, eCommerce giants like Jumia and Konga, even video streaming and shipping platforms. FIRS argued that if a business operates in Nigeria, VAT applies, no excuses.

Interestingly, this legal tussle comes as Bolt faces serious safety concerns in South Africa. After a series of violent attacks on e-hailing drivers — one of them fatal near Soweto — Bolt SA has launched new high-risk alerts to warn drivers about unsafe zones. Drivers can now decline those trips without penalties. “Safety is non-negotiable,” said operations manager Simo Kalajdzic, promising closer work with police and unions.

For Bolt, it’s a double battle: staying compliant with tax regimes that treat it as a direct service provider, while also convincing drivers and customers across Africa that its platform is both safe and fair. Whether it can balance both fronts without losing goodwill remains to be seen.

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