CHAMWE KAIRA
Over the long term, Mobile Telecommunications Company (MTC) anticipates that Maris will evolve into a key driver of revenue and profitability, capitalising on its potential to tap into underserved financial markets, according to an analysis on its 2024 financial year.
MTC launched Maris last year and the product will allow people with no bank account to send and receive money. The product targets the bulk of the unbanked market.
Entering a highly competitive mobile financial services landscape as a newcomer, Maris faces formidable challenges against established providers, Simonis Storm Securities said in a report.
To stand out, MTC will need to leverage its extensive customer base and brand strength while delivering a compelling and differentiated value proposition, the report said.
MTC has positioned Maris as more than just a revenue-generating tool.
It is also a socially impactful solution aimed at addressing financial exclusion in Namibia.
“With 49% of the adult population remaining unbanked and traditional banking fees at prohibitive levels, Maris seeks to bridge the gap by providing accessible and affordable alternatives. If successful, this initiative could not only strengthen MTC’s brand but also reinforce its growth narrative, despite the anticipated upfront costs and delayed profitability,” the report said.
MTC’s ambition to spearhead Namibia’s 5G rollout remains hindered by persistent regulatory delays, which prevent the company from fully capitalising on its early-mover advantage.
Despite launching Namibia’s first 5G trial in partnership with Huawei, MTC has yet to secure the necessary spectrum allocations, a crucial bottleneck in deploying high-bandwidth 5G services.
Simonis said MTC risks losing its first-mover advantage if spectrum allocation issues are not resolved soon, particularly as another local player accelerates its own 5G rollout plans.
“Further financial investment in 5G infrastructure is expected in 2025, but without regulatory clarity, the timeline remains fluid.”
MTC’s network expansion efforts continue to strengthen its market position, with coverage now reaching 98% of Namibia. The total number of network towers increased from 1 014 in 2023 to 1 032 in 2024, reinforcing the company’s commitment to infrastructure development. More notably, backbone fibre deployment expanded dramatically, growing from 1 187km in 2023 to 2 738km in 2024, a significant leap that enhances both network capacity and service quality.
Simonis said it finds the MTC’s FY24 performance noteworthy, with a 5.8% revenue growth primarily driven by prepaid income surpassing the N$2 billion mark.
“The launch of Maris, a financial services platform targeting unbanked communities, stands out as a strategic move that we believe strengthens MTC’s market position and enhances financial inclusion. However, rising CAPEX investments and challenges in 5G deployment highlight ongoing operational hurdles,” the report said.
