MTN To Cut Investment in Rwanda By 55% in 2010

MTN Rwanda has announced that it will cut total annual investment in 2010 by 55% to USD45 million, Rwandan daily The New Times reports.

‘There is no need to invest heavily in building capacity and coverage every year. What we did in 2009 can serve in 2010 and what is required now is to maintain what we built last year,’ noted the MTN Rwanda’s CEO, Khaled Mikkawi. Instead the company will focus on attracting more subscribers through the introduction of new promotions to fully utilise MTN’s network capacity.

In 2009 the cellco invested around USD100 million in the expansion of network coverage and increased capacity to serve three million customers.

‘Currently we have close to two million subscribers and this year we are targeting an extra million subscribers hopefully to make up the three million our capacity can handle,’ Mikkawi added.

South Africa’s MTN Group increased its interest in MTN Rwanda from 40% to 55% for USD40.5 million in March 2008, leaving Tristar Investments with a 35% stake. The remaining 10% is owned by the Rwandan government.