Telecel Group CEO: Energy Subsidies Key to Stabilizing Mobile Service Costs

Telecommunication providers are calling for strategic government support to address rising power-related expenses, which are significantly impacting the affordability and expansion of mobile services across Africa.

Moh Damush, Group CEO of Telecel, has emphasized that the cost of electricity remains the largest operational burden facing the telecommunications industry on the continent. Speaking at the 2025 Africa CEO Forum in Abidjan, he underscored how unreliable energy infrastructure is directly linked to elevated mobile tariffs and restricted digital growth.

“The most pressing issue we’re dealing with today is power,” Damush told Citi Business News’ Nii Larte Lartey. “Electricity availability and pricing are not only affecting operational costs but also driving up the end-user pricing structure. In Africa, this has become a fundamental barrier to affordable and sustainable digital access.”

He elaborated that unlike in Europe—where telecom operators often rely on a single layer of infrastructure due to stable energy supplies—telecom providers in Africa are forced to invest in multiple redundant systems to ensure network uptime. These include grid power, diesel generators, and increasingly, solar or hybrid energy systems.

“This triple-layered approach requires significantly more capital investment. At the same time, operators are under immense pressure to expand coverage, especially in underserved areas. The result is a financial squeeze on telecom players that limits their ability to grow sustainably,” Damush explained.

Energy Costs Driving Data Pricing

Energy expenditures, according to Damush, are a central reason why mobile data pricing remains high across many African markets. In regions where power supply is inconsistent or non-existent, telecom operators are forced to rely heavily on backup systems, dramatically increasing operational costs.

“The cost of running telecom networks in such conditions gets passed down to the customer,” he noted. “Without targeted interventions, extending affordable internet access to rural and underserved populations will remain a challenge.”

Call for Targeted Government Support

To alleviate this burden and foster growth in Africa’s digital economy, Damush urged governments to explore targeted power subsidies for energy-intensive sectors such as telecommunications.

“There are multiple ways to tackle this issue. One is by attracting broader infrastructure investments, which we are beginning to see in some countries. Another is direct government intervention—such as subsidising energy costs for telecom operators. This kind of support can improve service quality while still maintaining government revenues from the sector,” he said.

Damush’s comments come amid broader discussions on investment reforms and private sector development at the Africa CEO Forum. The 2025 edition of the forum, held from May 12–13, has brought together thousands of business and policy leaders from across the continent to chart a course for accelerating digital transformation, strengthening infrastructure, and leveraging the African Continental Free Trade Area (AfCFTA).

Forum Focused on Mobilising Investment for Growth

Speaking at the opening session, Makhtar Diop, Managing Director of the International Finance Corporation (IFC), highlighted the urgency of unlocking private capital to address job creation, infrastructure gaps, and energy reliability—issues that are tightly linked to the sustainability of telecom operations in Africa.

“The role of private sector capital is more critical than ever in building the infrastructure Africa needs to grow,” Diop stated. His remarks were echoed by other high-level delegates advocating for regulatory alignment and long-term investment strategies across the continent.

The forum is set to close with a landmark policy debate among candidates contesting to lead the African Development Bank (AfDB), a position that will shape the continent’s economic priorities for the coming years.