Africa 5G Core Network Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Africa 5G Core Network Market Trends and Insights

Accelerated 5G Standalone Core Deployments by Tier-1 Mobile Operators

Tier-1 operators entered 2026 with 5G standalone commitments moving into active procurement and deployment programs. The Africa 5G core network market benefits when group-level operators apply common cloud platforms across several national businesses. MTN Group's MUNA framework supported cloud-native modernization programs in South Africa, Zimbabwe, Angola, and Uganda. Ericsson reported that MTN South Africa completed an automated in-service software upgrade on a live Packet Core Gateway while it handled 2.52 million active sessions and 40 Gbps of traffic in 2025.^{[1]Börje Ekholm, “MTN SA Achieves Global and Africa Firsts as It Expands Core Network Upgrades with Ericsson,” Ericsson, ericsson.com} That operational result shows why operators may favor an established core supplier when a platform carries a large live subscriber base. GSMA Intelligence recorded 61 operators offering commercial 5G services in 37 African markets by mid-2026, giving the Africa 5G core network market a wider base for later standalone upgrades.^{[2]GSMA Intelligence, “5G in Africa 2026: Market Status, Trends and Outlook,” GSMA, gsma.com}

Rising Need for Network Slicing for Enterprise and Industrial Connectivity

Network slicing enables operators to assign defined network performance to a specific enterprise or public service. This capability depends on a standalone core deployment, making slicing demand closely tied to the timing of core modernization. GSMA Intelligence reported that 32 companies across Africa were procuring private-network equipment in early 2025, with activity concentrated in South Africa, Nigeria, Angola, and Ghana. Mining, manufacturing, logistics, and public safety users can require service levels that conventional consumer mobile offers cannot provide. Inwi deployed Morocco's first private industrial 5G network at the Nador West Med industrial hub in April 2026, in partnership with China Mobile International and Huawei, to support automation, real-time monitoring, Internet of Things applications, and remote sensing. These projects increase the value of the Network Exposure Function, as enterprise applications require secure access to specific network capabilities.

Cloud-Native Core Migration to Reduce Long-Term Operating Costs

Cloud-native cores allow operators to manage network functions as software components and add capacity with greater flexibility. The Africa 5G core network market, therefore, increasingly depends on cloud platforms, orchestration tools, and systems integration rather than on dedicated hardware alone. AMD found that 33% of surveyed communications service providers already ran most 5G core functions on cloud-native infrastructure in 2025, and another 30% targeted completion by the end of 2026.^{[3]Matthew Zielinski, “5G Core Operator Survey 2025 Edition: Scaling 5G SA,” AMD, amd.com} MTN Group and Huawei signed a 2026 memorandum focused on Autonomous Networks Level 4, AI-driven operations, 5G fixed wireless access, and data monetization.^{[4]MTN Group and Huawei Sign 2026 Strategic Memorandum of Understanding,” Huawei, huawei.com} A cloud-native design can permit different vendors to provide separate functions, although shared orchestration and policy layers may still make supplier changes difficult. Initial core awards can therefore influence later spending on upgrades, support, and automation.

Demand for Low-Latency Public Safety and Smart City Connectivity

Public safety, municipal operations, and smart-city programs require responsive connectivity and dependable service controls. The Africa 5G core network market can benefit from these applications, as they require distributed user-plane functions and well-defined service policies. Dedicated deployments are especially relevant where government agencies and critical infrastructure users need auditable environments for sensitive data. Nigeria's communications regulator has outlined plans for private 5G in ports, airports, and industrial parks, alongside testing of advanced capabilities for emergency services and connected drones. Vodacom reported capital expenditure of ZAR 23.6 billion (USD 1.30 billion) in FY2026 and added 6,160 new 5G sites across the group.^{[5]Vodacom Group Integrated Report 2026,” Vodacom Group, vodacom.com} The ongoing expansion of access networks provides operators with a larger infrastructure base for low-latency services when core platforms are ready.

High Network Modernization Cost and Long Payback Period

Core modernization requires substantial initial spending before operators can generate material new enterprise revenue. The challenge is most acute where average revenue per user is low, and 4G networks still meet much of the demand for mobile data. The Nigerian Communications Commission reported that industry investment exceeded USD 1 billion in 2025, while 5G accounted for 4.2% of mobile connections in March 2026. This gap can lengthen payback periods for a full standalone core, particularly where consumer adoption is concentrated in major cities. Managed core services can reduce the initial capital burden, but they require sufficient data center infrastructure and skilled operational support. Smaller operators may therefore retain existing core platforms until enterprise demand and radio coverage strengthen.

Limited Fiber Backhaul and Data Center Readiness

Cloud-native architectures require reliable, high-capacity links between distributed user-plane sites and centralized control functions. Limited fiber coverage and a lack of carrier-neutral data centers can restrict the practical use of telco edge cloud models outside leading markets. GSMA Intelligence stated that 16 African countries had completed 5G spectrum allocations by March 2026. Spectrum assignment is often an early step before operators commit to major core investments. SEACOM has expanded its focus on multi-terabit capacity and data-center connectivity in South Africa, Kenya, and Nigeria, showing the scale of supporting infrastructure that operators need. Hybrid models can provide a practical interim route, but they introduce network design and latency management requirements. These limits keep demand for advanced edge functions concentrated in a small number of countries.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Component: Solutions Anchor Revenue While Services Build Long-Term Demand

Solutions are expected to account for 58.91% of Africa 5G core network market revenue in 2025. The segment includes packet-core software, network functions virtualization infrastructure, and orchestration and management platforms. These products represent a significant initial share of spending because operators must establish the core technical foundation for standalone 5G. Packet-core software includes essential access, session, and user-plane functions. The Africa 5G core network market relies on these functions to manage mobile sessions, route traffic, enforce subscriber policies, and ensure service quality. MTN South Africa is expected to deploy Ericsson’s cloud-native packet core and user-management functions on a cloud-native infrastructure platform in 2025. This deployment highlights the role of software platforms in multi-year operator modernization plans.

Services are projected to expand at a CAGR of 34.11% from 2026 to 2031. The category includes integration and deployment, consulting, advisory services, support, and maintenance. Demand for services increases when operators migrate subscriber data, policy controls, and legacy systems without disrupting live services. It also rises when operators integrate multiple vendors into a shared cloud environment. AMD reported that 39% of surveyed communications service providers expected to create combined telecom cloud teams for core and virtual radio access network operations. This operational convergence supports recurring integration and managed-service work. The Africa 5G core network industry may see systems integrators play a larger role where smaller operators lack internal cloud operations teams. Vendors with established local support capabilities may also benefit as upgrades progress beyond the initial deployment stage.

By Deployment Model: Dedicated Systems Retain a Lead as Edge Cloud Use Expands

On-premises and dedicated systems are expected to account for 49.99% of revenue in the Africa 5G core network market in 2025. This position reflects security, sovereignty, and operational requirements among government-related and security-sensitive users. It also reflects the limited availability of large cloud regions in many countries. Dedicated systems give operators greater direct control over data handling, user-plane placement, and network operations. They can better support workloads that require data to remain within a defined jurisdiction. This deployment model also supports enterprises that require a separate and auditable core environment. These factors keep on-premise systems important even as public cloud options become more available.

Hybrid and telco edge cloud deployments are projected to expand at a CAGR of 32.19% from 2026 to 2031. Operators use these models to place user-plane processing closer to enterprise locations while retaining control-plane functions in centralized cloud environments. This approach can reduce application latency and backhaul traffic for local data flows. Intel, Nokia, and Dell Technologies are expected to present a low-footprint far-edge User Plane Function device at MWC 2026, offering 30% higher performance than the preceding solution. The device is designed for enterprise and industrial locations with limited space and infrastructure. The Africa 5G core network market will depend on greater availability of fiber and data centers for this model to expand beyond primary cities. The model offers a way to support fixed wireless access, private 5G, and industrial applications without placing every network function at the edge.

By End-User: Operators Lead Current Demand While Enterprise Use Builds

Telecom operators are expected to account for 71.51% of Africa 5G core network demand in 2025. Licensed mobile operators are the first buyers because they own the public networks that require modernization. Large groups can coordinate investments across national operations and use common vendor frameworks. MTN Group’s multi-market cloud program and Vodacom’s FY2026 capital expenditure illustrate the financial scale of operator-led infrastructure investment. Operator demand includes core software, integration, capacity expansion, automation, and security controls. Smaller carriers in markets such as Zimbabwe, Angola, and Ethiopia can also use vendor-financed programs to begin modernization. This trend broadens the customer base beyond the largest regional operators.

Enterprises are projected to expand at a CAGR of 34.98% from 2026 to 2031. The category includes manufacturing, energy and utilities, transportation and logistics, public safety and emergency services, and municipalities. Private networks can support worker monitoring, vehicle tracking, industrial automation, and remote operations. GSMA Intelligence identified procurement activity across mining, manufacturing, ports, and logistics, where dedicated services can deliver measurable operational value. MTN South Africa has used a private 5G network at a manganese mine for worker monitoring, vehicle tracking, and autonomous trucks. The Africa 5G core network industry benefits from these projects because each deployment can combine core functions, integration, security, and ongoing operational support. Enterprise adoption will remain concentrated where industrial users have adequate digital infrastructure and clear requirements for dependable connectivity.

By Network Function: User Plane Capacity Leads While API Exposure Advances

The User Plane Function is expected to account for 22.33% of network-function revenue in 2025. It manages mobile data flows and acts as the traffic anchor for user sessions. Operators need user-plane capacity in both centralized and distributed deployments. This makes it a core element of public mobile networks, private networks, and edge-based services. The function becomes more important when operators aim to reduce latency near enterprise locations. The Africa 5G core network market uses distributed User Plane Function placements to support local processing and reduce pressure on long-distance backhaul. Intel, Nokia, and Dell Technologies are expected to introduce a far-edge platform designed for this type of deployment in 2026.

The Network Exposure Function is projected to expand at a CAGR of 33.98% from 2026 to 2031 in the Africa 5G core network market. It gives approved external applications access to selected network capabilities, including service quality requests, location information, and edge triggers. The function supports the shift from basic connectivity to application-oriented services. Econet Wireless Zimbabwe is expected to agree with Ericsson in 2025 to add cloud-native 5G functions and the Cloud Core Exposure Server to its existing dual-mode core. The agreement is intended to support standalone 5G and third-party application partnerships. Other functions, such as the Network Slice Selection Function and Policy Control Function, can support commercial slice offerings. The Africa 5G core network market will see stronger demand for these tools when operators have enough enterprise customers willing to pay for application-level network services.

Geography Analysis

South Africa is expected to hold 47.88% of the Africa 5G core network market share in 2025 and is projected to expand at a 36.78% CAGR through 2031. The country benefits from more mature data center infrastructure, established operators, and a more developed spectrum environment than many of its regional peers. MTN South Africa is expected to complete its cloud-native packet core and user management deployment with Ericsson in 2025. The implementation includes the automated upgrade of a live Packet Core Gateway supporting 2.52 million active sessions and 40 Gbps of traffic. Vodacom is expected to add 6,160 new 5G sites across the group during FY2026 and report ZAR 23.6 billion (USD 1.30 billion) in capital expenditure. These programs are expected to sustain demand for capacity, automation, and core management platforms. South Africa also offers a reference environment for deployments that operators may later adapt in other African markets.

Nigeria represents a major long-term opportunity due to its population, large economy, and rising need for enterprise connectivity. However, Nigeria’s 5G deployment cycle currently trails South Africa’s, as coverage and adoption remain uneven. The Nigerian Communications Commission is expected to report more than USD 1 billion in sector investment in 2025 and plans for further investment in 2026. Its 2026-2030 spectrum roadmap targets 5G coverage for 50% of the population and all state capitals. The roadmap also includes additional 3.5 GHz spectrum and future mmWave allocations. Each spectrum and coverage milestone could create a subsequent need for expanded core capacity. Oil and gas, financial technology, and transportation offer enterprise use cases for secure and service-assured connectivity.

The Rest of Africa includes markets with varying levels of readiness, but it offers a broader future base for the Africa 5G core network market. Morocco is expected to launch commercial 5G in November 2025, while its operators are expected to develop plans to expand coverage during 2026 and beyond. Algeria is expected to license Mobilis, Ooredoo Algeria, and Djezzy for 5G in November 2025, creating a new base for core deployment. Ghana's Next Gen InfraCo is expected to activate a wholesale 4G and 5G platform in Accra, Kumasi, and Tamale in March 2026, with Nokia as its core technology partner. In Ethiopia, Ethio Telecom and ZTE are expected to finalize a 647-site network expansion agreement in March 2026. GSMA Intelligence also expects Safaricom to increase its 5G site count from 803 to 1,700 during 2025. These access-network investments create the conditions for later core modernization, although financing and backhaul constraints will vary by country.