Days after South African telecom giant, MTN changed its logo, stirring speculation, Africa’s largest telco has announced the purchase of a digital land in the Africarare metaverse dubbed Ubutuland.
The announcement released on the company’s website said it now owns 144 plots of virtual land with an overall area of 12x12m, becoming the first African company to venture into metaverse. The cost of the virtual property was not disclosed.
Africarare, which houses digital houses of African origin, is arguably the biggest African metaverse company. It was launched in October 2021, becoming the first African VR metaverse to launch. The platform uses UBU as its native token. Ubutuland is being developed by Africarare and Mann Made Media. The companies said it will be open to the public later this year to showcase some of the best of African art, fashion, entertainment, sports, tech and creativity. In addition, the company will serve as a platform for artists across the African continent looking to showcase their talent.
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MTN’s Group Executive for Marketing, Bernice Samuels said the move is part of the telco’s digital tech-focused Ambition 2025.
“This is an exciting moment for us as we lead businesses on the continent to enter the metaverse marketplace. This is exactly what our Ambition 2025 strategy is premised on – leveraging trends that amplify consumer’s digital experiences and engagement. We have always been at the forefront of technological and digital changes and we remain alive to the exciting opportunities the metaverse presents for us and our customers,” she said.
MTN unveiled its rebranded logo last month, hinting at a plan to pivot fully to emerging technology, especially metaverse and fintech.
“MTN Group’s Ambition 2025, aimed at ‘Leading digital platforms for Africa’s progress’, has ushered in a new look that is aligned to our evolution from a telecommunications company to a technology company underpinned by one simple, consistent, yet striking brand. Our commitment and focus to accelerate Africa’s progress sees MTN revealing a refreshed brand identity and campaign from February 27,” the company’s teaser said last month.
Global metaverse market is expected to reach $758.6 billion by 2026, growing at Compound Annual Growth Rate (CAGR) of 37.% over the projected period, according to an analysis report by Report Linker. Similarly, the global fintech market is expected to reach a market value of approximately $324 billion by 2026, growing at a compound annual growth rate of about 25.18% over the forecast period, according to data from Market Data Forecast.
Compared with the African entertainment and telecom market, which is expected to register a CAGR of 11.2% by 2026, growth opportunities in both metaverse and fintech, where MTN is already grabbing a share with its MoMo payment product, seems irresistible.
Moreover, the traditional telecom industry is facing increasing threat from the Big Tech’s move to provide faster, affordable internet to consumers around the world. And there is also Elon Musk’s Starlink and Jeff Bezos’ Kuiper satellite internet services bracing rapidly to be rolled out globally. With the telecom industry’s future packed with fierce competition, MTN appears to see diversification as a way out.