Telecom
Telcos in Nigeria, other Emerging Markets Squeezed by Diesel Crisis
The blockade of the Strait of Hormuz caused by the US and Israel’s war with Iran is placing fresh pressure on emerging market telecom operators, many of which remain heavily reliant on diesel generators to keep their networks running.
According to developingtelecom, with around 20% of the world’s oil supply disrupted and crude prices climbing above US$120 per barrel for the first time since 2022, operators across Africa, the Middle East and Asia are being hit by soaring energy costs at a time when demand for connectivity continues to rise. Markets including Pakistan, the Philippines and parts of Sub-Saharan Africa are among the hardest hit due to their dependence on imported fuel and unreliable national electricity grids.
Industry analysts warn the crisis could accelerate the telecom sector’s shift towards renewable energy and alternative network back-up solutions such as satellite connectivity, as diesel becomes increasingly expensive and operationally unsustainable.
Emerging markets bear the brunt
Crude oil prices rose above US$120 per barrel at the end of April, their highest level since 2022.
Emerging markets have been hit hardest, particularly countries that have failed to diversify their energy supply chains.
The Philippines is currently facing a major crisis, with 98% of its oil imports sourced from the Middle East. Pakistan has also seen supplies of liquefied natural gas disrupted, making daily life increasingly difficult for households and businesses alike.
For the telecoms sector, it is unsurprisingly operators in emerging markets that are bearing the brunt of the energy shock.
Many rely heavily on diesel generators to power base stations and telecom towers, particularly in remote areas with little or no access to national electricity grids. As a result, the challenge of connecting underserved communities is becoming even steeper.
According to environmental certification organisation Gold Standard, developing countries host an estimated 350GW to 500GW of diesel generator capacity spread across 20 million to 30 million sites, in many cases exceeding the capacity of national grids themselves. Even before the latest conflict, diesel power was already costly, averaging around US$0.30 per kilowatt-hour and significantly more in remote regions where the unconnected often live.
Gold Standard estimates annual spending on generator fuel reaches between US$30 billion and US$50 billion.
Diesel dependence driving operational pressure
CrossBoundary Energy estimates that around 70% of Africa’s half a million telecom towers rely on diesel generators, accounting for between 30% and 60% of tower operating expenditure. Fuel costs for operators across parts of Africa have surged by 40% to 60% over the past two years, with the Strait of Hormuz disruption adding further pressure.
Nigeria has been highlighted as one of the markets facing the most acute energy challenges, with grid availability in some regions falling as low as 40% to 50%. In rural areas of the Democratic Republic of Congo, telecom infrastructure is almost entirely dependent on diesel due to the absence of national grid access.
Across Sub-Saharan Africa, between 60% and 80% of telecom towers experience daily grid outages lasting between eight and 12 hours.
The demand for energy is only expected to rise further as operators continue expanding 4G coverage and rolling out 5G networks across emerging markets.
Renewable energy gains momentum
According to MTN Consulting, renewable energy accounted for just 23% of global telecom energy consumption in 2024, up from 10% in 2019.
However, much of that progress has been driven by operators in Europe rather than developing regions.
Operators including Turkcell, Tele2, Telia, Deutsche Telekom, KPN, Swisscom, A1 Telekom Austria, Telefonica, Telecom Italia and Liberty Global were highlighted by MTN Consulting as benefiting from long-term “foresight” as competitors elsewhere face increasingly volatile energy costs.
Operators forced to rethink network resilience
Ismail Patel, senior analyst for Enterprise Technology and Services at GlobalData, said energy concerns are now becoming inseparable from telecom strategy in emerging markets.
“Energy policy is increasingly being integrated into telecoms policy,” Patel said.
“Diesel is used in markets where there are unreliable electricity grids or frequent loadshedding. Thus far, diesel has been a core part of the business model, not just as a back-up for powering towers. The whole ecosystem of diesel – which involves manually delivering fuel to towers and manpower – is also part of the model.”
Patel warned that rising diesel costs caused by geopolitical instability will ultimately push up the price of connectivity or squeeze already-thin operator margins in highly price-sensitive markets.
“Operators will be forced to re-evaluate the most optimal back-up power mechanisms for their networks, including clean energy upgrades,” he said.
“This includes solar panels, which are susceptible to theft but do not have the immediate resale value of diesel, which is even more prone to unauthorised misappropriation.”
He added that satellite connectivity could emerge as a medium-term alternative for network resilience, particularly as direct-to-device (D2D) satellite services mature.
“Within this context, satellite as a back-up coverage mechanism might feature in the medium term, with both US and Chinese LEO satellite operators in a prime position to offer back-up connectivity to devices in place of towers,” Patel said.
“As the digital divide decreases and more underserved communities become dependent on connectivity, it will become far less economical for operators and governments to tolerate outages.”
Rather than being driven primarily by sustainability goals, Patel argued the shift towards renewable and satellite-powered infrastructure may ultimately become an economic necessity.
“Operators will start to look at greener options and satellite not because they are green or necessarily offer better coverage, but because they are becoming more cost-effective compared to diesel,” he said.
Patel identified Pakistan, Bangladesh, much of Sub-Saharan Africa including Nigeria and South Africa, Lebanon, and rural regions of India, Indonesia and the Philippines as among the markets most exposed to the crisis.
MTN Nigeria is accelerating investments in network expansion and modernization to address rising demand for mobile and data services across the country.
The operator is deploying additional base stations, upgrading existing infrastructure, and expanding fiber connectivity to improve network capacity, coverage, and service quality.
The investments are designed to support increasing smartphone adoption, higher data consumption, and the growing use of digital services by consumers and businesses.
MTN said the expansion aligns with its long-term strategy to enhance customer experience while strengthening Nigeria’s digital infrastructure.
The company expects the ongoing upgrades to improve connectivity, support economic growth, and enable broader access to reliable telecommunications services as demand for high-speed broadband continues to increase.
Airtel Africa’s CEO, Sunil Taldar, has announced the telco’s commitment to connecting 5,000 schools across its operating countries in Africa to the internet by 2027 through its philanthropic arm, Airtel Africa Foundation, in partnership with the United Nations Children’s Fund (UNICEF).
So far, the $57m partnership, which was launched in 2021, has cumulatively connected 3,296 schools and provided access to over 2 million learners and about 40,000 teachers. 64 digital learning platforms have been zero-rated thereby enabling more than 11m users to access educational content at no cost.
Speaking during a visit to St. Monica’s Girls School in Lusaka, which is one of the 300 schools already connected to the internet in Zambia, the Airtel Africa CEO stated that the initiative is having a profound impact on the quality of education by expanding access to digital learning resources for African children, in collaboration with governments.
Mr Taldar added: “Students are accessing best-in-class education from the curriculum developed by UNICEF in partnership with various Ministries of Education and provided through Airtel’s connectivity.
“We are also training teachers, so that they deliver digital education effectively. We aim to continue deepening meaningful connectivity in schools by providing free internet access, zero‑rated platforms and training teachers across the continent”.
Expressing her appreciation, the Headmistress of St. Monica’s Girls’ School, Sr Matilda Soloko said: “Being among the first schools connected in the initial stage, our learners have been able to study using the learning portal and their studies have been intensified. We remain grateful to Airtel and UNICEF.”
UNICEF’s Country Representative for Zambia, Dr Saja Farooq Abdullah said: “What this partnership has brought is really bridging the equality gap and the digital divide. It is making sure that every child learns wherever they are. It was exciting and interesting to see and hear from the girls how they can learn at their own pace, how they can review the materials, and how they do their homework with comfort.
The Director of Secondary Education in Zambia’s Ministry of Education, Yvonne Mwemba Chuulu lauded UNICEF and Airtel for the partnership saying: “At the Ministry of Education, we cannot do it alone, and we are grateful for the partnership that we have today.
“Our children are able to learn in a blended fashion, where we have a teacher who is also employing digital devices. We have also heard from the learners that they are able to access the portal when they are at home, which is a good thing because our learners continue to learn in the comfort of their homes”.
The School Connection programme is expanding digital learning to learners in 13 countries: Chad, Congo, Democratic Republic of Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Tanzania, Uganda, and Zambia. By equipping these schools with internet connectivity and training teachers on using the digital tools, it is providing children, particularly in underserved and remote regions, with the digital tools and skills they need to thrive.
Airtel Africa Foundation is advancing inclusive development across four strategic pillars, Financial Inclusion, Education, Environmental Sustainability and Digital Inclusion.
MultiChoice has officially become a wholly owned subsidiary of French media company Canal+, marking the completion of one of the largest acquisitions in Africa’s media and entertainment industry.
The integration brings the South Africa-based pay television operator under the full ownership of Canal+, a global media group with operations in 70 countries.
Announcing the completion of the transaction on Thursday, Chief Executive Officer of Canal+ Africa and MultiChoice, David Mignot, described the development as the beginning of a new phase of growth for the broadcaster.
“MultiChoice is now a full subsidiary of a truly international media group operating in 70 countries.
“The group was founded in France, is listed in London and Johannesburg, and has a strong African presence with operations in more than 45 countries,” Mignot said.
The acquisition combines Canal+’s international operations with MultiChoice’s extensive footprint across sub-Saharan Africa, where it serves millions of households through its DStv and GOtv platforms, as well as the Showmax streaming service.
According to Canal+, the integration will strengthen MultiChoice’s competitive position by giving it access to broader financial resources, technology, content partnerships and operational expertise.
The company said the combined business would increase investment in local content production, sports broadcasting and streaming services as competition intensifies from global platforms such as Netflix, Amazon Prime Video and Disney+.
The transaction is also expected to provide MultiChoice with greater access to international markets at a time when traditional pay television operators are adapting to changing consumer viewing habits and the rapid growth of digital streaming platforms.
Canal+ has expanded steadily across Africa over the past decade and now assumes full control of a business operating in more than 45 African countries, further strengthening its position in the continent’s media and entertainment sector.
The acquisition followed Canal+’s gradual increase in its shareholding in MultiChoice, which began in 2024.
After exceeding the regulatory threshold, the company launched a mandatory offer in April 2024 to acquire the remaining shares of the Johannesburg-listed broadcaster.
Following regulatory approvals and shareholder acceptance, Canal+ secured control of MultiChoice in 2025 before completing the process that has now made the company a wholly owned subsidiary.
Industry observers describe the acquisition as one of the most significant media transactions involving an African company, reflecting a broader trend of consolidation as global entertainment firms seek greater scale to compete in the streaming era.
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