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Author: Greg Davies


MTN Uganda is pleased to announce our intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE).  This follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20% of its shareholding in MTN Uganda to the public. MTN Group owns 96% of MTN Uganda.

The listing is in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda’s NTO licence, which require its listing by end-June 2022.

“The intention to float announcement is a major step towards delivering on our plan to list on the USE,” said Charles Mbire, Chairperson of the Board of Directors, MTN Uganda. “It is a reaffirmation of our long-term commitment to expand investment opportunities for Ugandans and we look forward to continuing our engagement with the CMA and USE to take forward the IPO and the listing.”

MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone: “Over the last 23 years, the people of Uganda have embraced MTN as their own and given us the legitimacy to operate throughout this country. We are reciprocating by inviting Ugandans to share in the ownership of the success that we have built together.”

In 1998, licence in hand, MTN Uganda commenced the rollout of our infrastructure and services. We provided affordable access to the people through a widespread voice and data network, investing UGX3.5 trillion in infrastructure development across the 134 districts of Uganda, both rural and urban. To facilitate universal access, we continue to contribute 2% of our gross annual revenue to the Uganda Communication Commission.

Over the years, MTN Uganda has prioritised the expansion of rural coverage. We currently cover 97% of the country’s population and have over 6,000km of fibre connectivity to provide the voice and data bandwidth that connects more than 15 million subscribers not only within the country but also across the world.

The growth in mobile penetration in Uganda from 0.27% in 1998 to 67% as of March 2021 is proof of MTN’s contribution to democratise mobile telephony. The fruits of this are evident in the widespread adoption of key technology platforms powered by high-speed connectivity, which enable the creation, distribution, and consumption of a wide range of digital services.

MTN Mobile Money (MoMo) has also revolutionised the financial landscape. Formal financial inclusion has nearly doubled from 28% in 2009 when MoMo was introduced in Uganda to 58% as of 2018.

MTN Uganda contributes an annual average of approximately UGX700 billion to the government treasury through taxes paid on our own account and as a withholding agent of government, making us the largest taxpayer in Uganda for the past decade.

We have over 1,000 direct employees and employ another 150,000 indirectly. Through our widespread distribution network, we provide a livelihood to more than 500,000 people, making MTN one of the largest employers in the country.

For the second year in a row, MTN Group has been named the most valuable African brand in the Brand Finance Africa 150 rankings, which assigned the group a brand value of US$2.7 billion – US$1.0 billion above the next most valuable brand.

A report on the 2021 survey’s findings states that “the telecoms giant dominates on home soil too, this year holding onto its decade-long reign as South Africa’s most valuable brand”.

Brand value is defined as the “net economic benefit that a brand owner would achieve by licensing the brand in the open market”.

Brand Finance Africa said the value of the continent’s top 150 brands fell by a combined US$5.5 billion in 2021, largely because of the COVID-19 pandemic creating uncertainty and impacting brands’ ability to do business as usual. In 2020, it had assigned MTN a brand value of US$3.3 billion.

MTN Group CEO Ralph Mupita said the latest accolades were achieved thanks to the hard work of MTNers across the continent and their commitment to bringing to everyone in 17 African markets the benefits of a modern connected life.

“We are both humbled and inspired by the confidence our customers and broader stakeholders continue to place in the MTN brand. At the core, a brand is about exceeding promises, expectations and delivering true value,” Mupita said.

“MTNers know this is the work that needs to be done every day, everywhere, as we remain focused on our core belief that everyone deserves the benefits of a modern connected life.”

The 2Africa consortium, comprised of China Mobile International, Facebook, MTN GlobalConnect, Orange, stc, Telecom Egypt, Vodafone and WIOCC, announced today the addition of a new segment – the 2Africa PEARLS branch – extending to the Arabian Gulf, India, and Pakistan. This extension will bring the total length of the 2Africa cable system to over 45,000 kilometers, making it the longest subsea cable system ever deployed. 

Now connecting three continents, Africa, Europe and Asia terrestrially through Egypt, 2Africa creates unique connectivity by adding vital landing locations in Oman (Barka), UAE (Abu Dhabi and Kalba), Qatar (Doha), Bahrain (Manama), Kuwait (Kuwait), Iraq (Al-Faw), Pakistan (Karachi), India (Mumbai), and a fourth landing in Saudi Arabia (Al Khobar). The new 2Africa branch joins recently announced extensions to the Canary Islands, the Seychelles, Comoros Islands, Angola, and a new landing to south-east Nigeria.

As with other 2Africa cable landings, capacity will be available in PEARLS landings at carrier-neutral facilities or open-access cable landing stations on a fair and equitable basis, encouraging and supporting the development of a healthy internet ecosystem.  

To further support a burgeoning global digital economy, the expanded system will serve an even wider range of communities that rely on the internet for services from education to healthcare, and businesses, providing economic and social benefits that come from increased connectivity. As announced in May 2020, 2Africa was planned to directly bring seamless international connectivity to 1.2 billion people. Today, with 2Africa PEARLS, 2Africa will be providing international connectivity to an additional 1.8 billion people–that’s 3 billion people, representing 36% of the global population.

Alcatel Submarine Networks (ASN) will deploy the new system utilizing new technologies such as SDM that allow the deployment of up to 16 fiber pairs, double that of older technologies and bringing greater and more cost-effective capacity.

The EDISON Alliance aims to improve the lives of 1 billion people through the 1 Billion Lives Challenge by increasing affordable digital access to healthcare, finance and education by 2025. Although 85% of the world’s population lives in areas covered by 4G, only half are online. Cost, not coverage, is the critical barrier to connectivity. In low-income countries, home to 650 million people, mobile broadband is 18 times more expensive than in developed countries, as a proportion of average income.

Derek O’Halloran, Head of the Platform for Shaping the Future of Digital Economy and New Value Creation at the World Economic Forum, said: “Most of the world’s population live within the coverage of broadband infrastructure. However, the lack of relevant, affordable services means that still 47% of people cannot participate and do not benefit from the internet. This challenge is about more than infrastructure – it is about the collaboration and investment needed across different industries, governments and civil society to bring safe, meaningful services to people’s lives. Today we launch the 1 Billion Lives Challenge to catalyse the commitments and silo-breaking partnerships needed to make this happen.” 

The COVID-19 pandemic has demonstrated how critical it is to access healthcare, education and financial services online. Yet, deep inequalities persist in the affordability of digital access between least-developed and most-developed countries. The data clearly demonstrate the need for quick and decisive mobilisation of resources and commitments to closing the digital divide. With focused resources and a coordinated response, the 1 Billion Lives Challenge aims to drive change and harness businesses, organisations and governments together to reimagine a digitally inclusive future.

“As we emerge from the COVID19 pandemic, it’s never been clearer that digital accessibility, affordability and usability are critical to participate in everything from education and banking to receiving basic healthcare,” said Hans Vestberg, Chairman and CEO, Verizon. “Through the EDISON Alliance, we aim to create a more digitally inclusive world by connecting 1 Billion Lives to this fundamental core of our society.”

By spotlighting and accelerating concrete commitments, the 1 Billion Lives Challenge aims to:

The three sectors of health, finance and education are key areas of focus for the EDISON Alliance. Two billion people still lack access to healthcare, 1.7 billion remain unbanked and 265 million children have no access to education. Enhancing internet access to this enormous unserved population will help ensure they are not left behind in realising their basic rights. 

“The EDISON Alliance’s 1 Billion Lives Challenge seeks to embed digital inclusion into the design of policies, infrastructure, and services to address the disproportionate impact that exclusion from the digital economy has on women and other underserved populations,” said Paula Ingabire, Minister for ICT and Innovation, Rwanda.

The Alliance supplies ongoing guidance and research on leading best practices to empower policy-makers and relevant stakeholders with mechanisms to make informed decisions and pioneer innovative ways of financing digital inclusion. These tools are key enablers to help achieve the 1 Billion Lives Challenge and include the Shared Principles for an Inclusive Financial System, the Guidebook for Digital Inclusion Bond Financing and the EDISON Navigator, an online tool currently being designed to provide users easy access to curated information on best practices and lessons learned in digital inclusion approaches. 

The 1 Billion Lives Challenge brings together leaders of global businesses, international organisations and governments who have pledged to improve a quantified number of lives through digitally inclusive services. The initial wave of existing and new commitments assembled to meet this challenge includes:

Visit the website to learn more and join the 1 Billion Lives Challenge.

MTN South Africa network will be the first mobile operator in Africa to provide access to 5G technology to customers from the Philippines through its international roaming agreement with the Philippines’ leading mobile services provider, Smart Communications, Inc. (Smart). The agreement delivers on MTN’s and Smart’s commitment to keeping its travelers connected and providing them with access to 5G; both at home and when travelling as capable devices become available.

Customers of Smart in South Africa can enjoy 5G roaming access when they subscribe to Smart’s GigaRoam 1GB roaming plan for only P999 valid for 5 days. To subscribe, simply access https://roam.smart.com.ph or the GigaLife app.

“This is part of Smart’s commitment to bring our world-class services anywhere in the world by expanding our 5G roaming coverage in Africa, after our successful rollout with 46 partners in Europe, USA, Middle East and Asia,” said Ray Arsenal, AVP and Head of Roaming Partnerships.

“We’re excited to launch 5G roaming in South Africa with Smart’s network because of what it means for customers,” said Arne Casteleyn, General Manager – International Roaming, MTN GlobalConnect. “With MTN Y’ello Connect Roaming Hub and our central Roaming team, we never stop innovating, developing and deploying faster roaming services to provide our customers with access to a next-generation network. Furthermore, providing 5G services to our visitors coming to Africa is crucial to get the same data speeds as at home and to harness trends such as the Internet of Things (IoT). We continue to ramp up the roll out of 4G, VoLTE and 5G roaming with the world’s top operators which proves MTN’s commitment to provide excellent roaming services to its travelers as travel restrictions ease with mass vaccinations.”

Established in 2018, MTN GlobalConnect is based in Dubai and its team is made up of more than 25 nationalities.

Businesses integrating Flutterwave in Cameroon, Côte d’Ivoire, Rwanda, Uganda, and Zambia can receive payments via MTN Mobile Money

MTN is pleased to announce a mobile money partnership with Africa’s leading payments technology company, Flutterwave. This partnership will allow businesses integrating Flutterwave in Cameroon, Côte d’Ivoire, Rwanda, Uganda and Zambia to receive payments via MTN Mobile Money (MoMo). 

MTN MoMo is a fintech platform providing consumers and businesses with an electronic wallet, enabling electronic transfers and payments as well as access to digital and financial services. At the end of June 2021, MTN MoMo had 48.9 million active users and 581,514 merchants. MoMo enables businesses to accept and make payments within the mobile money ecosystem. This new partnership will enable Flutterwave to offer MTN Mobile Money as a payment method to its business customers.

In recent years, Africa has witnessed an explosion in mobile penetration as smartphone adoption has risen rapidly. According to the GSMA, this year Africa will hit the half a billion mark of unique mobile subscribers and the continent will reach 50% subscriber penetration by 2025. Sub-Saharan Africa alone is responsible for more than 45% of the world’s mobile money accounts with the number of account holders exceeding half a billion by 2020, as shared on Statista.

Through this partnership, MTN and Flutterwave will positively contribute to this trend by increasing mobile money usage and penetration in Africa to improve local economies and livelihoods as well as create opportunities for individuals and businesses across the continent.

Commenting on the partnership, Serigne Dioum, MTN Group Chief Digital and Fintech Officer said: “As we progress on our journey to becoming the largest fintech platform in Africa, we will empower millions of businesses to embrace e-commerce in our markets to accept digital payments from MoMo consumers. We believe this is an enabler to accelerating digitized payments in Africa. Building strong ecosystems through partnerships is central to our platform strategy and we will continue to invest in expanding the reach of our platform to consumers and businesses in Africa.”   

Commenting on the collaboration, Olugbenga “GB” Agboola, Founder and CEO of Flutterwave, said: “Africa has one of the highest growth rates for mobile money adoption and e-commerce in the world. It makes sense that we help provide a seamless payment method to support and ensure African businesses reap the full benefits of the e-commerce boom in the region. Our goal has always been to grow a new wave of prosperity in Africa by creating more avenues for businesses in Africa to accept payments. With this partnership, we can achieve this while creating endless possibilities for our customers.” 

The new partnership will further expand on Flutterwave’s previous collaboration with MTN, beyond Uganda and Rwanda – with the potential of deepening adoption of digital payments and e-commerce in Africa, a sector expected to reach $29 billion by 2022, according to Statista. 

MTN, in partnership with ayoba, today launched a dynamic media campaign entitled: ‘Life inside ayoba’ that will bring the African super app to life. The campaign brings together all the features of the super app including chat, voice and video calling, channels, music via playlists, gaming, micro apps as well as payment facilities in some territories.

The campaign highlights the simplicity and versatility of the app, and the advantages a user gains in using all its exciting features.

“ayoba is a strategic platform for MTN as it harnesses Africa’s unique digital ecosystem and context. We believe it to be a triple-play opportunity to advance free messaging, content distribution and e-commerce powered by an open platform. Made in Africa for the World, ayoba is highly localised and tailored for African and Middle East consumer needs. This campaign is perfect for our markets, it is vibrant and relevant and is sure to appeal to all who use it,” says Serigne Dioum, MTN Group Chief Digital and Fintech Officer.

MTN Group’s digital revenue increased by 23.8%* in the six months to end-June 2021, supported by the greater uptake of services. In the period, instant messaging platform ayoba recorded 8.0 million monthly active users, an addition of 2.5 million since December 2020. It has now been integrated into 18 MTN markets.

Our goal is to reach 19 million monthly active users  by the end of this year and 100 million by 2025, leveraging MTN’s existing base to scale up quickly and then grow as an OTT player in new markets.

The ayoba TV campaign is supported by radio, localised to each broadcast territory, as well as outdoor, print and on-ground activations. The message is simple – ayoba has everything you need. 

“There is a need to go above the line to raise the awareness of ayoba. We strongly believe that our app will appeal to many in Africa and the Middle East and provides digital solutions to the day-to-day life of the consumer.  In building the campaign we looked at what unites our African users, rather than what divides them.  We had to show users that they can find everything they need in our all-in-one app.  This approach has brought us a textured and innovative campaign, and we are very proud of it. We are excited to launch the campaign with the full support of MTN,” says Burak Akinci, Chief Executive Officer of Simfy (ayoba).

2021 has been a busy year so far for ayoba, which celebrated its second year of operations in May 2021.

ayoba is accelerating not only digital inclusion but also financial inclusion, with MTN MoMo integrated into ayoba in select markets including Ghana, Uganda, Cameroon and Congo Brazzaville.  ayoba recently received the award for Best OTT Brand of the Year at the Marketing World Awards 2021.  This adds to the 2020 win for ayoba at the Africa Digital Awards for Best Mobile Application in November 2020

MTN Group today announced the appointment of Burak Akinci as Chief Executive Officer of Simfy (ayoba), reporting to the MTN Group Chief Digital and Fintech Officer Serigne Dioum and responsible for the super app ayoba.  
 

Effective 1 September 2021, Burak joins Africa’s leading mobile operator from Turkcell, where he was CEO of BiP, an instant messaging platform with millions of users across 192 countries. Burak, with over 20 years of experience in marketing, digital businesses and technologies, led the build-out of the BiP platform, which has more than 30 million users. In his new role, he will be based in Cape Town.

“We are thrilled that an executive of Burak’s calibre is joining us. His appointment accelerates our work to build the largest and most valuable platforms as we target greater digital and financial inclusion across the continent,” said Dioum.

Commenting on his appointment, Akinci said “I feel honoured and very excited to join MTN family and ayoba. I believe in the digital vision for Africa driven by MTN and I am confident that, with this great team, we will build the best communication platform and super app of Africa.” At the end of March 2021, MTN had 5.3 million monthly active ayoba users across 20 markets and a plan to grow this to 100 million in 2025. We aim to capture more than 10% of the gross merchandise value of the digital economy in our footprint as we move beyond the traditional telco-led Mobile Money (MoMo) offering with ayoba, which is an OTT (over the top) service that does not require users to be MTN subscribers. We are also targeting 100 million MoMo users by 2025, up from 46.6 million at end-March.

Sanlam and MTN Group announced today that they are joining forces in an exclusive strategic alliance (the Alliance) to distribute Sanlam Group insurance and investment products across Africa, further developing MTN’s mobile financial services business.

The Alliance will build a digital insurance and investment business, which will be an integral part of MTN’s fintech offering. It will provide people across the continent with easier access to these services, particularly those sectors of the population that have typically been unable to access traditional distribution channels for such products.

The Alliance has the potential to pre-empt and adapt to digital disruption in markets where both Sanlam and MTN operate. It will also enable MTN to accelerate and scale its InsurTech offering through its brand and reach and by leveraging Sanlam’s licensing and geographical footprint, as well as its broad product capabilities and expertise. MTN InsurTech businesses currently have approximately 6 million active policyholders, with target of over 30 million policyholders by 2025 with this new Alliance.

The collaboration provides Sanlam with the opportunity to extend consumer access to its products and grow its Africa operations by providing insurance to MTN’s customer base across the continent, thereby deepening its extensive footprint in Africa.

Commenting on the formation of the Alliance, Sanlam Group CEO Mr Paul Hanratty said: “We are excited by MTN’s development of modern mobile financial services for the benefit and empowerment of the African consumer. It gives us great pride to be able to partner with MTN to build the best possible range of solutions in the insurance and investment arena for consumers. We anticipate strong long-term growth in mobile financial services and insurance and investments are no exception to this.”

The collaboration offers MTN the opportunity to provide more value-added services to its customers, enhancing its existing offering. “MTN Group is equally excited to be partnering with Sanlam in driving financial inclusion across the continent and providing customers with insurance and investment products tailored to the needs of the African consumer,” said MTN Group President and CEO Mr. Ralph Mupita.

“Sanlam is the ideal partner as the leading insurance and investment business across Africa, and with partnership key to its strategic and execution approach. MTN has built a scale fintech business with over 100 million wallets, of which approximately half are actively using Mobile Money services every month, presenting a meaningful opportunity to further drive financial inclusion through the provision of appropriate insurance and investment solutions.”

The Alliance will build and leverage the strengths and assets of both Sanlam and MTN to establish a digital insurance and investment capability across Africa.

In the initial period, the Alliance will be chaired by Ralph Mupita, with Paul Hanratty as Deputy Chair. While approximately 46% of Africa’s population has access to and uses cell phone services, insurance penetration remains low at less than 5% in most markets except South Africa.

The transaction is subject to the parties concluding definitive agreements and completing the relevant suspensive conditions.

MTN is the largest telecommunications operator in Africa with a presence in 17 countries on the continent and a total of more than 270 million subscribers across its total 21 markets. It is also a large fintech operator, with a presence in 19 countries and 100 million wallets, 800 000 agents and 650 000 merchants signed up.

Sanlam is the largest non-banking financial services group in Africa, with a presence in 33 countries across the continent. Forming mutually beneficial partnerships is part of Sanlam’s business model and is a key pillar for accelerating growth on the African continent.

MTN Group today reported a strong performance for the first half of 2021: exceeding most medium-term targets; reducing debt; advancing digital and financial inclusion; and cutting the cost to communicate across Africa. The Group also called for vaccine equity amid a deepening divide between countries that have access to vaccines for their people and those that do not.

“Notwithstanding the many challenges presented by the COVID-19 pandemic, MTN delivered a solid H1, exceeding most of the Group’s medium-term targets through sustained commercial momentum as we executed on our Ambition 2025 strategy,” said MTN Group President and Chief Executive Officer Ralph Mupita.

We continued to prioritise the health of our people, as well as sustain initiatives to support Africa’s recovery from the pandemic’s devastating impacts on lives and livelihoods. By 12 July 2021, we had 2 452 COVID-19 infections across our operations and mourned the loss of 18 MTN employees. By that date, just over 8% of our staff had been vaccinated with at least one dose.

“We add our voice to the calls by the World Health Organisation and the Africa CDC for COVID-19 vaccine equity for developing markets. The push for herd immunity across the world and a return to broad-based socio-economic global growth will not be possible while developing markets battle to access vaccines,” said Mupita. “Public private partnerships focused on a sustainable future for our planet will be critical to successfully navigate this pandemic.”

With the launch of the #OneMorePush campaign in July, MTN Group extended our partnership with the Africa CDC. This campaign encourages people to not give up in the fight against COVID-19 and to continue to wear their masks, wash their hands and practise social distancing, at a time when vaccination levels in our markets still lag those in developed countries.

At the end of June 2021, across our 21 markets MTN Group had more than 277 million voice subscribers; 117 million active data customers; almost 49 million active Mobile Money users; and eight million users of our instant messaging platform ayoba.

In constant currency terms, service revenue increased by 20% in H1 to almost R82 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) before once-off items increased by 24% to nearly R39 billion. The Group’s EBITDA margin expanded by 1.6 percentage points to 44.9%.

Reported headline earnings per share (HEPS) declined by 10%, impacted by non-operational and once-off items, which included accounting adjustments related to our Middle East portfolio as well as material COVID-19 donations. Excluding these, adjusted HEPS increased by 31.5%. This supported the further expansion of adjusted return on equity, which was up by more than four percentage points to 18.3%. In line with previous guidance, no interim dividend was declared.

We made good progress in reducing our holding company debt, which declined to R36.7 billion from R43.3 billion, and the holdco leverage reduced to 1.4x in the half. This was boosted by cash inflows received from our operating companies of R9.3 billion, which included R4.0 billion from Nigeria, as well as R1.8 billion in proceeds from the sale of our stake in Belgacom International Carrier Services.

We advanced our work to create shared value, driven by our belief that everyone deserves the benefits of a modern connected life. We added approximately R50 billion of economic value to sustain societies in our markets; increased the number of people covered by broadband by more than 25 million; and reduced the average effective data rate per megabyte across our markets by more than 17%. We also paid cash taxes of R7.2 billion in support of the nation states in which we operate, up 47% year-on-year.

We made progress in efforts to reach net zero emissions by 2040, including working closely with our suppliers to reduce our scope 3 emissions. To accelerate diversity and inclusion, we set a target of 50% women representation of executives and boards across our operating companies.

Our April 2021 bid for a new telecom licence in Ethiopia was unsuccessful. Our bid took into account the licence conditions as well as related uncertainties. We had also adopted a partnership approach to ensure that funding and risk was diversified. While disappointing, we are comfortable that our approach was guided by disciplined strategic and capital allocation frameworks. The Group has decided not to participate in the new liberalisation processes underway in Ethiopia, and we thank the Ethiopian government for the opportunity to have been part of the previous process. We also thank the partners we had in our unsuccessful licence bid.

We announced our decision to abandon the MTN operation in Syria given regulatory actions and demands that make operating in that country untenable. We reserve our rights to seek redress through international legal processes given the actions of the Syrian authorities that have left us with no other choice than to exit. MTN Syria represented less than 1% of MTN Group EBITDA at the end of 2020. In line with our focus on Africa, we continue to explore options to exit Yemen and Afghanistan in an orderly manner.