The partnership leans on MTN's massive footprint and Microsoft's software muscle to see whether AI can take root in everyday work and study across uneven digital landscapes.
MTN's plan to extend AI tools across its markets starts with the weight of its own reach. The group recently crossed the 300 million customer mark, and it is using that milestone to introduce a broader digital offer built around Microsoft 365 Copilot. This is not positioned as a simple software rollout. The two companies are setting out to link productivity tools with basic digital readiness, and they intend to begin in selected MTN markets in early 2026. MTN customers who opt in will also receive a package of online security features that sit on top of their mobile and internet plans.
The announcement lands at a moment when Africa's consumer tech market is moving toward more structured digital usage rather than raw connectivity. MTN's leadership knows that growth from this point requires more than network coverage. It requires tools that help people work, learn, and handle everyday digital tasks with confidence. Microsoft sees an opportunity in that same gap.
MTN's latest quarter offers enough movement to support these ambitions. The group reported revenue of ZAR 160.38 billion, a year on year increase of 25.6 percent. In constant currency, service revenue grew even faster at 26.6 percent. The company points to steadier macroeconomic conditions in several markets and clearer execution of its commercial priorities.
EBITDA before one off items climbed to ZAR 73.02 billion. That puts the margin at 43.8 percent, up sharply from 33.8 percent. MTN did record a small loss tied to the sale of South African towers, though this did not alter the broader trend. Capital expenditure rose to ZAR 27.92 billion, reflecting a continued investment cycle rather than any sudden expansion. The company expects FY2025 capex to fall between ZAR 33 billion and ZAR 38 billion, assuming currency stability.
Subscriber growth continues to be a point of strength. The group now serves 301.3 million customers. Active data users rose to 165.8 million. Mobile money remains central in many of its markets, with 64.3 million active users. MTN Nigeria also returned to positive retained income and resumed dividend payments, something the group had been working toward for several quarters.
MTN South Africa remains a priority because of the need to rebuild prepaid performance. This segment has faced pressure in recent years, and the company is pairing network investment with renewed commercial work. Nigeria and Ghana continue to show stronger momentum, helped by improving regulatory conditions and more stable demand. Several smaller markets are in active turnaround.
What ties these markets together is a single question: how to translate network scale into customer value. MTN's leadership believes that the partnership with Microsoft provides one route to that outcome. Giving customers access to AI tools is only part of the story. The deeper idea is to build habits around productivity, learning, security, and digital navigation. These are the areas where mobile operators in Africa often see the slowest adoption curves.
AI is still unevenly integrated into daily life across the continent. Some urban markets are moving faster, while rural regions rely on improving infrastructure and more accessible pricing. MTN and Microsoft argue that familiarity with AI tools will shape how people work and study in the coming years. By tying these tools to existing mobile relationships, they hope to encourage practical usage rather than novelty.
The companies also appear aware that cost sensitivity could hinder adoption. MTN's prepaid footprint is large, and Microsoft has been adjusting its licensing and product tiers for markets where pricing power is limited. The rollout in 2026 will likely test how these adjustments translate into real demand.
The collaboration is not designed as a quick revenue play. MTN is working to stabilise performance in some markets while building long term resilience in others. Microsoft is looking for deeper penetration of its software ecosystem across Africa. Both see a strategic overlap.
If the execution matches the ambition, the partnership may help normalize AI-driven productivity tools for a much broader base of users. That outcome would sit neatly within MTN's next phase, which is focused on stronger service adoption and a clearer path to sustainable growth.