The AfCFTA Risk: Mupita Reveals MTN Makes 80% of Earnings Outside South Africa

The recent surge of anti-immigrant sentiment in South Africa has predictably triggered a counter-reaction across West Africa, with trending conversations in Nigeria demanding the expulsion of African-owned businesses like MTN, prompting regional economists and corporate leaders to warn that weaponizing pan-African businesses in geopolitical disputes severely threatens continental unity and economic integration.

MTN’s African revenue distribution

MTN Group CEO Ralph Mupita recently addressed the broader implications of these tensions, noting that corporate giants with a continental footprint are deeply intertwined with the economies they serve.

Speaking to Bloomberg, Mupita provided a stark statistical reality check regarding the company’s revenue distribution: “MTN makes less than 20% in South Africa and makes 80% of our earnings elsewhere.”

This data point illustrates that MTN is, by definition, a broadly African asset rather than a strictly South African one.

AfCFTA economic integration impact

The African Continental Free Trade Area (AfCFTA), established to create a single market for goods and services across 54 countries, relies heavily on the cross-border movement of capital and operations spearheaded by companies like MTN. The United Nations Economic Commission for Africa (UNECA) projects that AfCFTA could boost intra-African trade by up to 52%.

Attacking the corporate pillars that facilitate this trade over localised Afrophobic incidents directly undermines this historic economic pact.

Economic cascading effects of retaliatory boycotts

Furthermore, driving away multinational telecommunications operators would have a cascading effect on local economies. In Nigeria alone, the telecom sector provides the backbone for the nation’s booming fintech and e-commerce industries. Retaliatory boycotts would threaten thousands of direct jobs and millions of indirect livelihoods.

“MTN as a pan African business, is supportive of constructive and inclusive dialogue on these complex issues,” Mupita emphasised via LinkedIn, advocating for diplomacy over destruction.