In the late 1990s, a mobile phone in Ghana was a luxury. Spacefon, one of the early networks, sold SIM cards that cost more than many people earned in a month. Two decades later, the company that grew from Spacefon, now MTN Ghana, has tens of millions of subscribers and runs the country’s dominant mobile money service.
From Spacefon to MTN and mobile money
Spacefon, operated by Scancom, launched mobile services in Ghana in the 1990s. It became one of the most popular networks as mobile phones spread. Spacefon was rebranded as Areeba in the mid-2000s under Investcom. In 2006, South Africa’s MTN Group acquired Investcom, including its Ghana operation, and the network was rebranded MTN Ghana.
MTN expanded its network across Ghana and became the market leader by subscribers. MTN launched Mobile Money in Ghana in 2009. MoMo grew slowly at first, then rapidly, becoming central to how Ghanaians send and receive money, pay bills and save.
Market power, competitors and taxes
In 2018, Ghana introduced mobile money interoperability, allowing transfers between networks and bank accounts. MTN Ghana listed on the Ghana Stock Exchange in 2018 after a public offer, becoming one of the largest companies on the exchange. In 2020, the National Communications Authority designated MTN as having significant market power, leading to regulatory measures aimed at promoting competition.
Rivals include Telecel, formerly Vodafone Ghana, and AT, formerly AirtelTigo. MTN separated its mobile money business into a subsidiary to meet regulatory requirements and expand financial services. The electronic transfer levy introduced in 2022 affected mobile money transactions and sparked debate. Customers sometimes complain about call drops and data costs, and regulators monitor quality of service.
Customers, jobs and sponsorship
MTN’s network of mobile money agents, small shops and kiosks where customers deposit and withdraw cash, now reaches almost every town and village in Ghana. For many rural families, the agent is the nearest thing to a bank. The company is one of Ghana’s largest taxpayers and employers in the telecoms sector, and its results are closely watched by investors on the stock exchange.
MTN sponsors football, music events and community programmes. Spacefon sold phones to a small elite. Its successor now moves money for market traders, farmers and students across the country every day.
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