High energy costs are driving up mobile tariffs and slowing the growth of Africa’s digital economy, according to Telecel Group CEO Moh Damush. He believes that targeted power subsidies are essential to ensure affordable and reliable telecom services across the continent.
During the 2025 Africa CEO Forum in Abidjan, Damush spoke with Citi Business News’ Nii Larte Lartey. He pointed out that power costs are the biggest challenge facing telecom operators today. “The biggest challenge that the continent has currently is the power resources – which has a huge impact on the prices, whether for the customers or for the cost of the operation itself,” he said.
Damush explained that telecom companies in Africa must build three layers of infrastructure to maintain connectivity. In contrast, providers in Europe can rely on just one layer. This added pressure forces African companies to spend more on capital investment.
He also noted that unreliable electricity increases data costs in many regions. This makes it harder to expand affordable internet access to underserved communities. Damush believes that government support can help reduce this burden. “Governments are starting to attract more investment, which benefits sectors like telecom,” he said.
He added that subsidising power for telecoms would boost service quality while maintaining government revenue. This, he argues, would also draw more private investment into the industry.
The 2025 Africa CEO Forum brought together thousands of leaders to discuss how to improve investment, expand AfCFTA, and strengthen the private sector.
