Rising Prices, Rising Demand Power MEA's Telecom Market to Fastest Growth in 2024 Despite Inflation Pressures
In many parts of the Middle East and Africa, telecom services have become a lifeline to daily life. It’s how people get paid, how they run a business, how they stay connected in countries where banks, schools, and physical infrastructure haven’t kept pace with population growth.
That context makes the surge in telecom and pay TV spending in the Middle East and Africa (MEA) region all the more telling. In 2024, the MEA telecom market reported the fastest post-COVID growth in the year 2024 with spending hitting USD 149 B, according to an IDC report.
IDC’s latest data show that total spending jumped 7.7% year over year, the fastest growth globally and far ahead of the 2.2% global average.
The growth is more than just a number; it reflects how essential digital connectivity (mobile and data services) has become to businesses, education, and daily survival in places across the region and how people are willing to pay for that access.
Categorising the drivers for the reported figures, the report points to two main factors behind the growth: a spike in demand for data services in underpenetrated African markets, and operator-led tariff hikes aimed at offsetting inflation.
Africa is the engine here, pushing the curve on both demand and network expansion. Gulf states may already be deep into 5G rollouts and AI-based services, but many African markets are still focused on getting basic coverage to scale. Operators are in a race to expand cellular and fibre infrastructure into rural and peri-urban zones, build out 4G, and lay the groundwork for what comes next.
For instance, MTN is aiming for 95% 4G coverage by 2025 and has already launched 5G in South Africa, Nigeria, and Uganda. Safaricom is pairing its 5G expansion in Kenya with fibre-to-home bundles targeting both households and small businesses. Airtel is investing USD 700 M annually to extend its footprint in Nigeria and other key markets.
Tariffs are also playing a role. As macro conditions tighten, operators are raising prices to cope with inflation. And yet demand remains strong. That says a lot about how vital telecom services have become in people’s lives.
Türkiye, Egypt, Nigeria, Sudan, and Zimbabwe all saw notable increases in mobile data costs in 2024. Still, usage kept climbing, especially as more people shifted to mobile broadband and digital-first apps and services.
It’s not just data. The pay TV market, often bundled with telecom services, is shifting too. Legacy players like DStv are still present, but their dominance is slipping. Viewers are moving to streaming platforms like Netflix, Showmax, and StarTimes ON. Local players, like WATCH iT in Egypt, are gaining ground. In Gulf countries, where mobile access is nearly universal, younger users are skipping satellite TV altogether.
These changes are forcing telcos to rethink their business models. Many are moving beyond infrastructure and connectivity, turning into broader tech platforms.
You can see that pivot in their strategies. MTN’s “Ambition 2025” focuses on building revenue through digital services and fintech. Safaricom is growing M-PESA into areas like credit, insurance, and e-commerce. Etisalat by e&, on the other hand, is investing in AI, cloud, and digital identity tools.
Overall, as the region’s dependence on mobile and data services deepens and telecom operators provide more runway, there is a corresponding rise in spending, and IDC expects the trend to continue in the current year. 2025 is projected to bring another , pushing total spending to nearly .
The picture is promising, but not without risk. IDC had revised its earlier growth forecast for the market downward by 1.2 percentage points, citing softening inflation and earnings adjustments from several key operators.
The report also pointed to the vulnerability of the region to global economic shocks. New U.S. tariffs on telecom equipment, for instance, could raise capex costs for operators and delay infrastructure rollouts.
That could have cascading effects. “Tariffs on telecommunications equipment might lead to increased costs for telecom operators, potentially delaying 5G rollouts and AI projects”, said Mark Walker, IDC’s VP of worldwide telecoms data. While the direct impact may be limited, the broader uncertainty could slow hiring, discourage investment, and increase pressure on already stretched consumer spending.
Even so, a forecasted growth rate above 7% signals real strength. Operators are expanding, consumers are adopting digital tools faster, and regulators are working to open up competition. The MEA region isn’t slowing down. It’s scaling up.
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