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In the first half of 2023, MTN Group delivered resilient results, advanced our strategy by partnering with Mastercard on the MTN fintech business, and progressed plans to exit Afghanistan. This was achieved in a difficult operating environment marked by elevated inflation, weaker local currencies and regulatory developments across our 19 markets.

“We delivered a resilient performance in H1 23 and made good strategic progress against a tough macro backdrop,” said MTN Group President and CEO Ralph Mupita.

“In South Africa, we were very encouraged by the improved network availability on the back of our power-resilience investment, resulting in a stronger Q2 23 performance than Q1 23,” he said. By end-June, MTN South Africa’s network availability was more than 90% despite severe electricity shortages across the country.

“In Nigeria, we delivered a very strong operational result, having navigated the cash shortages in Q1 23 and increased inflation,” Mupita said. “The policy changes implemented in Nigeria in Q2 23 have short-term negative impacts, but we see these as being very constructive for the investment climate in the medium to longer term.”

MTN Group’s service revenue grew 15% to almost R108 billion in constant-currency terms. This was driven by increases in revenue from data services of 24% and from fintech services of 22%. Revenue from voice services increased 6% in the period. 

At the end of June 2023, we had 292 million subscribers with whom we worked to create shared value. This subscriber base – 4% higher than the same period last year – benefited from lower data rates and improved access to broadband services.

To facilitate the digital economy, we increased the number of active data users by more than 7% to nearly 140 million; reported a 19% increase in overall data traffic; and improved data affordability by reducing the average effective rate per megabyte by more than 22%.

We continued to invest in world-class networks and platforms for the people of Africa, committing R17.2 billion in capital expenditure in the first six months of 2023. The Group’s balance sheet remained strong, with all key metrics well within the limits of our loan covenants.

Driven by solid revenue growth and improved efficiencies, adjusted headline earnings per share (HEPS) increased by 25% to 749 cents and adjusted return on equity (ROE) expanded by one percentage point to 24.4%. These were in line with our medium-term guidance.

The MTN Group Fintech business delivered on our rapid expansion plans. The volume of transactions increased by 37% to 8.3 billion in the first half of the year. These were executed by 61 million active MoMo customers.

Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services.

MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis. Signing of the definitive investment agreements is expected to occur in the very near term as we approach finalisation of customary due diligence. The closing of the investment will be subject to customary closing conditions.

We continued to work to simplify our portfolio. The process for MTN Group to exit Afghanistan in an orderly fashion through the sale of our entire shareholding to Investcom AF, and affiliate company of M1, remains well on track. The transaction received conditional regulatory approval to proceed, pending the submission of relevant documentation to the Afghanistan Regulatory Authority.

Looking ahead, MTN will keep working to create shared value across our markets. “We are focused on the continued execution of our Ambition 2025, which remains relevant in the current macroeconomic volatility and presents attractive scope for growth,” said Mupita.

“As we manage the challenges in our operating environment, as well as the near-term impacts on our top-line and margins, we maintain our medium-term guidance.” 

MTN Group, a leading telecommunications company, is excited to announce the launch of its Open API Hackathon, inviting developers from multiple markets to participate in creating innovative mobile applications that utilize the MTN Mobile Money APIs for their respective markets.

This hackathon, organized by MTN Group Fintech, will be the third of its kind and will take place in the following 14 countries: Uganda, Ghana, Benin, Zambia, South Africa, eSwatini, Rwanda, Cameroon, Liberia, Guinea Conakry, Nigeria, South Sudan, Cote d’Ivoire and Congo B.

Developers participating in the hackathon will compete to design and develop a solution that goes beyond processing payments, incorporating additional features and functionalities that promote financial inclusion and literacy in their registered markets.

“MTN is dedicated to advancing financial and digital inclusion across the continent as part of our strategy to build a pan-African Fintech platform, driving the digital economy and fostering social and economic growth in Africa,” said Serigne Dioum, MTN Group Chief Fintech Officer.

Through the Open API Platform, MTN aims to harness the talent and creativity of Africa’s developers, enabling them to leverage the MoMo Platform and create opportunities for growth. The company firmly believes that collaborating with Africa’s talented individuals will expand the service offerings available on MoMo.

Key Details of the Hackathon:

MTN Group looks forward to the innovative solutions that developers will create, driving financial inclusion and empowering individuals and businesses across Africa.

In the bustling heart of Lagos, at the 2023 Businessday CEO Forum, Ralph Mupita, the President and CEO of MTN Group, delivered a keynote address to Nigeria’s business leaders. His focus was not on his company’s achievements, but on Nigeria and its potential to become a significant player in the global digital economy. Other keynote speakers at the Forum included Dr. Akinwunmi Adesina, President of the African Development Bank, and Osagie Okunbor, CEO of Shell Nigeria.

Mupita’s presentation was a call to action, a blueprint for building a digital economy that could propel Nigeria to become the world’s 5th largest economy. He highlighted the vast untapped potential in the digital economy, with Nigeria’s Internet Gross Domestic Product (iGDP) currently at 6% and expected to double by 2050 to reach 145 billion USD. He noted that Africa currently accounts for only ~1% of the global digital economy, a stark contrast to 68% in the United States, 22% in China, and 27% in Asia. This gap, he suggested, represents a significant opportunity for growth.

Commending the new administration under President Bola Ahmed Tinubu, who has indicated his commitment to promote the growth of ICT and the digital economy for the shared prosperity of all Nigerians, Mupita called on the government and business leaders to promote policies that facilitate inclusive growth. He urged for a spectrum roadmap that ensures sufficient resources to meet the surging demand for mobile services. He advocated for speedy access to mid-band spectrum, crucial for the future of low latency 5G, and access to sub-1 GHz spectrum to provide widespread rural mobile broadband services.

He also highlighted the digital skills gap in Nigeria and across the African continent, especially in advanced skills such as AI & cloud computing. With an estimated 230 million “digital jobs” in Sub-Saharan Africa alone by 2030, Mupita emphasized the need for digital skills development to advance the digital economy.

“The potential is immense. The path is clear,” Mupita stated in concluding his presentation. “The future of Nigeria lies in its digital economy. And with strategic intent, collaborative effort, and a shared vision, that future is within reach.”

“In the face of global economic shifts and technological advancements, Nigeria stands at the precipice of a digital revolution. The country’s digital economy is poised to drive economic growth, create jobs, and foster innovation,” he added.

Mupita’s presentation was not just a corporate update; it was a rallying cry for Nigeria to seize the opportunities presented by the digital age. It was a call for collaboration between the government, the private sector, and the citizens to build a digital economy that is inclusive, sustainable, and powerful enough to propel Nigeria into the ranks of the world’s largest economies.

This vision for Nigeria’s digital future is not just a dream; it’s a feasible reality. With the right policies, strategic partnerships, and a commitment to digital inclusion, Nigeria can leverage its digital economy to drive sustainable growth and development. This is the future that Mupita sees for Nigeria, and it’s a future that is within our grasp.

The role of Nigeria’s business leaders in this transformation cannot be overstated. As key drivers of the economy, they have the power to shape the digital landscape of Nigeria. By investing in digital infrastructure, promoting digital literacy, and fostering a culture of innovation, they can help build a digital economy that is robust, inclusive, and sustainable.

In conclusion, Mupita’s presentation at the 2023 Businessday CEO forum was more than a corporate update; it was a vision of a brighter future for Nigeria. A future where digital technology drives economic growth, fosters innovation, and improves the lives of all Nigerians. It’s a future that we can all look forward to.

MTN Group’s Board of Directors held its annual strategy session in Ghana this week, during which Chairman Mcebisi Jonas said the relationship between governments and multinationals needs to change and that MTN wants to partner for progress with nation states and twin the Group’s aspirations with those of its host countries.

“The future is about strategic partnerships. We must move beyond seeing corporates only as a source of tax revenue, as entities that government’s sole focus is to regulate and control,” Jonas said at a dinner attended by MTN Ghana stakeholders, including His Excellency the Vice President of Ghana, Alhaji Dr. Mahamudu Bawumia. “We need to rethink partnership models between the public and private sector in support of national development agendas while at the same protecting shareholder value.”    

Considering the sharp reduction in foreign direct investment in Africa since the pandemic, Jonas spoke of the need to protect and scale-up investments and look more towards pan-African corporates to drive growth. “The danger is that many of our most innovative start-ups will relocate to tech hubs elsewhere in the world…We must build a new ecosystem to drive African innovation and growth.”

This required that governments address red-tape and the ease of doing business.

In his remarks, HE Dr Bawumia spoke of the need for smart investments in new technologies and infrastructure to modernise Ghana’s economy to gain competitive advantage: “This is why partnerships with organisations like MTN are critical to us as a government and we would like to commend them for their role in accelerating Ghana’s digital efforts and contributing to Ghana’s socio-economic development.”

MTN Ghana Chairman Dr Ishmael Yamson concurred: “This partnership should be anchored in a strong belief that business and society have a symbiotic relationship.” 

During the two-day visit, members of the MTN Group Board undertook trips to the market to familiarise themselves with the work of customer agents and solicit the views of traders and customers who use MTN’s services. This is part of MTN’s work to strengthen collaboration and to underscore the collective effort required to achieve long-term socio-economic growth. One of the four strategic priorities of MTN’s Ambition 2025 is to ‘create shared value’. Regularly engaging with key stakeholders is essential to deliver on this priority.

MTN Group, a leading telecommunications company, is pleased to announce the return of Stephen Blewett to MTN as Operations Executive: Markets, effective July 1, 2023. Stephen will be taking over from Wim Vanhelleputte, who is departing to pursue new opportunities outside the company.

In his new role, Stephen will assume executive responsibility for the WECA markets of Liberia, Guinea Conakry, Guinea Bissau and Congo Brazzaville, and provide general operations support across the same region, reporting directly to Ebenezer Twum Asante, Senior Vice President: Markets.

Stephen Blewett brings a wealth of experience to his new position, having most recently served as the Group Chief Operating Officer of Digicel, based in Kingston, Jamaica. In this role, he oversaw 20 country CEOs and spearheaded key areas such as marketing, information and technology, procurement, financial services, gaming, and digital media.

Prior to his tenure at Digicel, Stephen served as CEO of MTN Cameroon, where he made significant contributions to the company’s growth and success. He had previously held similar leadership roles in the telecommunications industry, including CEO of MTN Benin and Chief Commercial Officer at Namibian mobile operator MTC. In 2020, he was voted MTN CEO of the Year by his peers. Stephen’s career also includes notable positions such as Chief Executive of 3D Holdings, Managing Director of Autopage Cellular, Marketing and Sales Executive at Telkom Mobile, and Executive Head for Sales and Marketing at MCell in Mozambique.

Stephen Blewett holds a Bachelor of Commerce degree from the University of KwaZulu-Natal in South Africa. He is also a published author of marketing, sales, and business books, further demonstrating his expertise and thought leadership in the industry.

“I would like to express my deep appreciation to Wim Vanhelleputte for his significant contribution to the company,” said Ralph Mupita, MTN Group President and CEO. “Wim joined MTN in 2009 as CEO of MTN Cote d’Ivoire, and subsequently moved to Bharti Airtel in 2015. He returned to MTN as CEO of MTN Uganda in 2016, leading the Opco’s impressive recovery and driving notable growth. His departure is sincerely acknowledged, and best wishes are extended to him for his future endeavours.”

The independent Science Based Targets initiative (SBTi)[1] has validated MTN Group’s company-wide greenhouse gas (GHG) emissions reduction targets – a significant milestone in our sustainability journey as well as an important recognition of our dedication to mitigating climate change.

“Businesses have a key role to play in tackling climate change using the latest science,” says MTN Group Chief Sustainability and Corporate Affairs Officer Nompilo Morafo.  “We are pleased to be joining over 5 200 companies and financial institutions that are taking vital steps to help deliver rapid emissions reductions, working with the SBTi.”

SBTi classified MTN’s scope 1 and 2 target ambition as being in line with climate science with a 1.5°C trajectory, an important recognition of the Company’s dedication to mitigating climate change and a significant milestone in MTN’s sustainability journey.

MTN is committed to reducing absolute scope 1 and 2 GHG emissions by 50% by 2030 from a 2021 base year. We have also pledged to decrease absolute scope 3 GHG emissions from fuel and energy-related activities by 50% by 2030 from a 2021 base.

“In collaboration with our suppliers, we are committed to ensuring that 80% of suppliers by spend will have science-based targets by 2026,” says MTN Group Chief Technology and Information Officer Mazen Mroué. “We believe in doing for our planet, and that’s why environmental and social considerations are at the heart of everything we do.”

MTN’s SBTi-approved targets will be published on the SBTi website on 29 June 2023.

Beyond our environmental commitments, MTN is driving digital inclusion and empowerment across Africa, embodying our dedication to the United Nations Sustainable Development Goals. By creating shared value for our stakeholders through environmental, social, governance and economic value-added business practices and solutions, MTN is not only creating a more sustainable business model but is also helping improve the lives of people in Africa.

[1] The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets. www.sciencebasedtargets.org

As evidence of MTN Group’s commitment to transformation in South Africa, we retained our Level 1 Broad-Based Black Economic Empowerment (B-BBEE) contributor status for the 2022 financial year.

The rating is contained in the Group’s annual B-BBEE compliance report, in which major subsidiary MTN South Africa retained a Level 1 B-BBEE contributor status for the fourth year running.

The B-BBEE contributor status considers both the MTN South Africa operating entity and the MTN Group’s South African operating entities.

“In our work to create the MTN of tomorrow, we are committed to fulfilling our strategic priority to create shared value,” said MTN Group President and Chief Executive Officer Ralph Mupita. “This incorporates a focus on increased localisation across our markets, including in South Africa where we were established at the dawn of democracy in 1994 as a leader in transformation.”

Notable improvements for the MTN Group in 2022 were in our ‘Management Control’ and ‘Preferential Procurement’ scores.

The ‘Management Control’ improvement was a result of the consistent alignment of MTN’s recruitment practices to the targets related to the economically active population (EAP) in South Africa. The improvement in the ‘Preferential Procurement’ score was mainly due to an increase in procurement spending with exempt micro enterprises (EMEs), qualifying small enterprises (QSEs) and ‘Designated Groups’.

“Retaining our Level 1 B-BBEE Contributor status is critical. We intend to take steps not only to retain this status in future but also to put more emphasis on our preferential procurement and localisation efforts,” Mupita said.

MTN South Africa CEO Charles Molapisi said a focus of preferential procurement will be the development of a new approach to Enterprise and Supplier Development (ESD) in MTN SA. “In the year ahead, we intend to drive an ambitious programme to enhance supply chain resilience, with B-BBEE and localisation at its core.”

“Key to this effort is to go beyond mere compliance to current legislation and rather to improve our ability to adapt to the ever-changing operating environment and the challenging economic conditions,” he added.

MTN Group is pleased to announce the appointment of M. Mudassar Aqil as Executive: BankTech, in its Fintech business, MoMo, effective from 1 August 2023. BankTech, is one of MTN Fintech’s five verticals, currently serves over 69 million monthly active users across 16 markets. 

With a wealth of experience in the financial services industry, including a 12-year tenure as a CEO in the banking and fintech space, Mudassar brings with him a deep understanding of banking regulation, lending, payments, and platform strategy.

Over his 25-year career, Mudassar has served in several senior executive roles in the financial services and fintech sectors across the United States and Pakistan. His notable achievements include turning around two banks and a significant wallet platform as CEO, transforming them into market-leading profitable entities.

Most recently, Mudassar served as CEO at Telenor Microfinance Bank & Easypaisa (a joint venture between Telenor Group and Ant Group) in Pakistan since 2019. During his tenure, he successfully led the bank back to profitability, expanded the wallet business threefold to 12.5 million MAUs – making Easypaisa Pakistan’s largest app – and revitalized its credit business through digital transformation.

Mudassar holds an MBA from Salisbury University, MD, USA and is an alumnus of the Advanced Management Program at Harvard Business School.

“We are delighted to welcome Mudassar to the Group Fintech team. His wealth of experience in the financial services sector and diverse background will undoubtedly ensure that we continue to break new ground in our ongoing efforts to promote financial inclusion across the continent,” said Serigne Dioum, Group Chief Fintech Officer.

“Mudassar has built a stellar career through his innate ability to establish an organisational vision, develop strategic and tactical plans, and execute them with well-led and highly effective teams. He is a strategic yet pragmatic leader, renowned for his hands-on approach to business,” concluded Dioum.

We congratulate Mudassar and wish him the very best in his new role.

MTN Group today announced the launch of its highly anticipated 21 Days of Y’ello Care campaign, set to run from 1 to 21 June 2023. This year’s campaign focuses on “Empowering entrepreneurs to unlock growth and job creation for communities.”

Building on the successes of prior years, the 2023 campaign underlines MTN’s enduring commitment to instigating positive change within the communities it serves. This year’s initiative targets grassroots entrepreneurs, providing them with essential digital and financial tools, facilitating wider market access, and offering valuable business mentoring and knowledge-sharing sessions.

“Our purpose extends beyond connectivity; it’s about catalysing change and enabling progress in the communities we serve,” said Nompilo Morafo, Chief Sustainability and Corporate Affairs Officer at MTN Group. “By focusing on grassroots entrepreneurs and harnessing digital and financial tools, MTN is actively fostering an ecosystem of innovation and entrepreneurship that will drive sustainable economic development across the continent. This campaign aligns with our long-term vision for a digitally inclusive Africa. It underscores our commitment to being more than just a telecom provider, but a catalyst for positive change and growth in the communities we serve.”

Now in its 16th year, the “21 Days of Y’ello Care” campaign stands as MTN’s flagship employee volunteerism initiative, designed to engage MTN staff in high-impact social projects within their local communities. Each year, the campaign focuses on a different theme, reflecting MTN’s multifaceted approach to social responsibility.

In addition to leveraging digital and financial tools as vital enablers to stimulate growth for grassroots-based entrepreneurs, the 2023 campaign emphasises often overlooked communities – those in rural, remote, and disadvantaged areas, with a particular emphasis on women, youth, and differently-abled individuals.

MTN Group has been named by Brand Africa as the number one African brand that is doing good for people, society and the environment in a new category of its annual awards inspired by businesses shifting from profit to purpose. Brand Africa also named MTN as the most admired African brand recalled spontaneously.

“As we celebrate Africa Day, we are greatly encouraged to receive this accolade, which recognises our work to deliver on our strategic priority to create shared value with ESG at the core,” said MTN Group President and Chief Executive Officer Ralph Mupita. “It motivates us to keep focused on providing leading digital solutions for Africa’s progress and to ensure that everyone enjoys the benefits of a modern connected life.”

The new award category acknowledges MTN’s contributions towards empowering people, supporting sustainable societal development and preserving the environment. Through our broad range of initiatives and alliances, MTN Group demonstrates dedication to making a positive difference in the lives of Africans. 

Understanding that commitment needs to translate into action, our advances in this regard in 2022 include ensuring greater digital inclusion by extending broadband (including rural) coverage to almost 88% of the population in our markets; contributing approximately R149 billion in economic value-added to society; and reducing GHG emissions by around 13.9%^ as part of journey to achieve net zero emissions by 2040. 

“This award would not have been possible without the support of the many stakeholders with whom we engage every day. I would like to thank them all – among them our customers, our employees, governments and regulators, and society at large across our 19 markets,” added Mupita as he acknowledged the role of the Group’s partners in its achievements in connecting the unconnected, uplifting communities and protecting the planet:

In April, Brand Finance assigned MTN the highest ‘sustainability perceptions value’ of all companies in its ‘South Africa 100 2023’ survey in which the Group retained the rank as South Africa’s most valuable brand.