Selorm Adadevoh, the CEO of MTN Ghana, has defended the company’s decision to raise rates by 15% for all of its goods and services, citing the need to protect the business’s sustainability.
Speaking with the media, Adadevoh said that the company’s need to share the growing cost burden with customers after bearing steadily rising prices for a number of years was what led to the decision to hike rates.
Adadevoh highlighted the effects of the nation’s improving macroeconomic circumstances, saying, “MTN, for example, was subject to inflation pressures of over 40% on average in 2023.
Selorm Adadevoh said, “We had reached a point where all of our cost inputs had gone up significantly, and we had to find ways to share this cost with our subscribers.”
He emphasized that the corporation was bearing a substantial amount (25%) of the cost in spite of the 15% rate rise.
“MTN for instance was exposed to inflation pressures of more than 40% on average in 2023. But your price increase was 15%, that is absorbing 25% of the cost.
“If you look at MTN records over 7 to 10 years, you acknowledge that there has not been any increase in prices in those periods”, Selorm Adadevoh stated.
Two primary modifications were covered by the review: first, all services now have a mandatory 2.5 percentage point rise in VAT from 12.5% to 15%, which would affect both prepaid and postpaid consumers.
Furthermore, MTN Ghana moved on with a review of its mobile data pricing that affected both pay monthly and pay-as-you-go customers, with an average upward revision of 15%.
Adadevoh responded to worries regarding Mobile Money fraud by stating that the business has implemented significant precautions, such as blocking SIM cards and identifying devices that are being used fraudulently.
He underlined the continued efforts to put new policies into place to address the issue.
Adadevoh revealed that MTN Ghana, Vodafone, and AT have worked together to speed up digitization through the National Roaming Program.
