Asia’s richest man Mukesh Ambani eyes African telecom market with Ghanaian 5G venture

Omokolade Ajayi -

Key Points:

  • Asia’s richest man enters African telecoms with NGIC, a Ghana-based company offering 5G broadband services.
  • NGIC holds Ghana’s only 5G license, giving them a decade-long advantage to build infrastructure and offer high-speed broadband services.
  • NGIC’s strategy echoes Ambani’s Jio, aiming for affordable 5G similar to Jio’s disruptive entry in India.

Mukesh Ambani, Asia’s richest man and the world’s 12th wealthiest individual with a $114 billion fortune, is poised to expand his influence in the global telecoms industry by entering the high-growth African market. This strategic venture is set to intensify competition in the continent’s telecom sector.

Radisys Corp., a unit of Reliance Industries, which is controlled by Ambani, will supply crucial network infrastructure, applications, and smartphones to Next-Gen InfraCo (NGIC), a telecoms company based in Ghana. NGIC plans to launch operations by the end of the year, focusing on delivering 5G broadband services to mobile operators and internet service providers in Ghana.

NGIC’s Executive Director, Harkirit Singh, announced in Mumbai that NGIC holds Ghana’s exclusive 5G license, allowing it to provide 5G services for the next decade. The company’s capital expenditure over three years is projected at $145 million.

Building affordable 5G infrastructure

Harkirit Singh, Executive Director of NGIC, revealed the plans ahead of the company’s launch in Mumbai. NGIC aims to begin operations by year-end, offering 5G broadband services to mobile operators and internet service providers in Ghana.

NGIC’s strategic partnerships, technological expertise, and exclusive hold on Ghana’s only 5G license position them to build broadband services at scale. This is a significant advantage considering the high costs typically borne by individual mobile carriers.

The venture is committed to building affordable digital services in emerging markets, a strategy that aligns with its decade-long exclusive right to offer 5G services in Ghana (with a total license validity of 15 years). The company has a projected capital expenditure of $145 million over the next three years.

Emulating Jio’s success

NGIC’s approach appears to mirror the success of Mukesh Ambani’s Jio Infocomm Ltd. in India. Jio is currently India’s largest mobile operator with 470 million users, its disruptive entry in late 2016, with low-cost data and free voice calls, transformed the Indian telecom landscape, forcing consolidation and driving down mobile data costs for millions.

While Jio contributes $12.1 billion to Ambani’s wealth, the majority of his $114 billion fortune stems from his over $100 billion interest in Reliance Industries, which owns the world’s largest oil refining complex. The Mumbai-based conglomerate boasts a diversified portfolio, including polymer and chemical manufacturing, and generated over $100 billion in revenue for the year ending March 2024.