MTN Uganda

MTN Uganda
Company typePublic company
USE: MTNU
IndustryTelecommunications
Founded21 October 1998; 26 years ago (1998-10-21)[1]
HeadquartersPlot 69-71 Jinja Road
Kampala, Uganda
Key people
Charles Mbire
Chairman[2]
Sylvia Mulinge
CEO[2]
Services
RevenuePretax:USh1.5 trillion (US$407 million) (2019)[3]
Number of employees
1,000+ (2021)
Websitewww.mtn.co.ug

MTN Uganda is the largest telecom company in Uganda, with 11.2 million subscribers, accounting for 55 percent market share, as of 30 June 2017.[4][5] By 31 December 2019, its customer base had increased to 12.6 million customers.[3] In March 2021, the Uganda Communications Commission estimated the number of MTN customers in Uganda at 15 million, out of 28.3 million mobile network subscribers, thereby attaining a 53 percent market share.[6] In May 2024, MTNU registered her 20 millionth customer in the country.[7]

Location

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The headquarters of MTN Uganda are located at 69-71 Jinja Road, in the Kampala Central Division, one of the administrative units of the city of Kampala, the capital and largest city of Uganda.[8] The coordinates of the company headquarters are 0°19'10.0"N, 32°35'53.0"E (Latitude:0.319444; Longitude:32.598056).[9]

In 2016, The Independent (Uganda) reported that MTN Uganda, had plans to construct a new skyscraper between Jinja Road and Old Port Bell Road, where British American Tobacco used to maintain offices, which would serve as the headquarters for the company.[10]

Overview

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MTN Uganda is a subsidiary of MTN Group, a multinational telecommunications group connecting approximately 232 million people in 22 countries across Africa and the Middle East.[11] In 2009, MTN Uganda introduced its mobile telephone-based banking product known as Mobile Money. As of March 2015, MTN controlled 80 percent of the mobile money market in the country.[12]

In November 2015, MTN Uganda switched off 3.7 million of its 11.5 million customers to comply with the Uganda Communications Commission's new SIM card registration requirements.[13][14]

In May 2016, MTN Uganda borrowed US$114 million (UGX:385.8 or 380 billion, depending on the source) to expand its network and build a new headquarters building on Jinja Road in Kampala. Funding was in the form of a syndicated loan by a consortium of four Ugandan banks, namely Stanbic Bank Uganda, Standard Chartered Uganda, Citibank Uganda, and Barclays Bank of Uganda (now Absa Bank Uganda Limited).[15][16]

In August 2016, MTN Uganda in partnership with Commercial Bank of Africa (Uganda) introduced a new product that allows customers to save money and access microloan products, using their cell phone. The product, called MoKash is available on personal accounts and on accounts for small and medium-sized enterprises.[17]

In August 2018, MTN Uganda launched a joint Tidal–MTN music streaming service. The Tidal platform, co-owned by American mogul Jay-Z, offers streaming audio and video for a daily fee of USh1000 (US$0.26). Subscribers receive music, videos and exclusive content. Music from the majority of Uganda's leading artistes is available. At that time, the service was available only in Uganda and South Africa, on the African continent.[18]

As of December 2020, MTN Uganda's customer base totaled 14.1 million subscribers, out of a total of 31 million mobile telephone subscribers in the country, representing a 45.5 percent market share.[19]

Initial public offering

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In 2018 The EastAfrican newspaper reported that MTN Uganda planned to list the shares of stock of the company on the Uganda Securities Exchange (USE).[20] That willingness to list, on the part of MTN Uganda, was again reported in March 2019.[21]

In March 2020 MTN Uganda agreed to pay US$100 million for a 14 year operating licence and to list 20 percent shareholding on the USE, no later than the second quarter of 2022.[22] The shares sold on the USE will be restricted to nationals of the countries of the East African Community; namely Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.[23] The IPO was expected to raise about US$1.2 billion, according to Keith Kalyegira, the CEO of the Capital Markets Authority of Uganda (CMA).[24]

On 27 May 2024 the MTN Group made a secondary offering to investors on the USE to take up 7.03 percent shareholding, so as to comply with the regulatory maximum 80 percent ownership in MTN Uganda by the Group.[25]

The MTN Kampala Marathon
The MTN Kampala Marathon

Shareholding

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As of December 2021, the shareholding in MTN Uganda is as listed in the table below. The IPO that was concluded in November 2021, raised USh:535,939,000,000 (approx. US$151 million). The shares of stock of the company started trading on the Uganda Securities Exchange, on 6 December 2021 at 9.30am, local time. It trades under the symbol MTNU.[26][27]

Shareholding In MTN Uganda Limited
Rank Name of Owner % Ownership Post-IPO
1 MTN Group 83.05[26]
2 NSSF Uganda 8.84[26]
3 Charles Magezi Mbire 3.99[26]
4 NSSF Uganda - Samlam 0.26[26]
5 Bank of Uganda Defined Benefits Scheme – Sanlam 0.19[26]
6 NSSF Kenya - Sanlam 0.18[26]
7 Duet Africa Opportunities Master Fund ICF
8 FG Hermes Oman LLC
9 First Rand Bank Limited
10 Uganda Revenue Authority Staff Benefit Scheme – Sanlam
11 Approximately 20,000 Other Investors 3.06[26]
Total 100.00

Shareholding post secondary public offer

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On 27 May 2024, MTN Group floated the shares that did not sell in the IPO in order to comply with the regulatory requirement not to own more than 80 percent of MTN Uganda. The secondary offer was 130 percent over-subscribed. The table below illustrates the shareholding in the company as of 20 June 2024, when the data was released.[28][29]

Shareholding In MTN Uganda Limited In June 2024
Rank Name of Owner % Ownership Post 2nd Float
1 MTN Group 76.00[28]
2 NSSF Uganda 11.70[28]
3 Charles Magezi Mbire 4.00[28]
4 First Rand Bank Limited 1.60[28]
5 JPM FRB A/c Africa Partners Fund 0.90[28]
6 Uganda National Social Security Fund II 0.40[28]
7 BNYMSNV SBSA IML LAU 0.40[28]
8 BNYMSNV BHF Asset Management 0.20[28]
9 Bank of Uganda Defined Benefits Scheme I 0.20[28]
10 SSB Russell Investment Company Plc Fund 0.20[28]
11 Approximately 20,600 Other Investors[30] 3.06[26] 3.50[28]
Total 100.00

Governance

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As of March 2019, the Acting Chief Executive Officer of the company was Gordian Kyomukama, previously the Chief Technology Officer[31] In June 2019, Wim Vanhelleputte re-assumed his position as CEO, after he returned to Uganda, following negotiations between the Ugandan government and MTN International.[32] As of November 2023, the Chairman of the board is Charles Magezi Mbire and the CEO is Sylvia Wairimu Mulinge.[2]

Controversy

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Wim Vanhelleputte was the chief executive officer.[33] On 14 February 2019, he was suddenly deported from Uganda to his native Belgium on allegations of compromising Uganda's national security.[34] This followed the deportation of three other MTN Uganda executives in the month of July 2018, including the General Manager-Mobile Financial Services, General Manager-Sales and Distribution, and Chief Marketing Officer. All were accused of "compromising Uganda's national security.[35] The former CEO then sued the government of Uganda in Uganda's High Court.[36]

In May 2019, following negotiations between president Yoweri Museveni and MTN International, Wim Vanhelleputte was allowed to return to Uganda and resume his duties as CEO of MTN Uganda.[32]

Licensing

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In October 2018, the company's initial 20-year operating license expired. Due to prolonged negotiations between MTN and the Ugandan government, the company has since been operating on temporary short-term licenses.[37] In March 2020 MTN Uganda agreed to pay US$100 million for a 14-year operating license. The telecom also agreed to list its shares on the USE and float at least 20 percent shareholding, in an IPO.[38]

In July 2020, MTN Uganda received an operators licence for 12 years, starting on 1 July 2020. Under the terms of the new licence, MTN Uganda shall list a portion of their shareholding (minimum of 20 percent), on the Uganda Securities Exchange within 24 months of obtaining the licence. The licence cost US$100 million, which was paid in full in one lump sum.[39]

Financials

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In the 12 months ended 31 December 2019, MTN Uganda's gross revenue amounted to USh1.5 trillion (approx. US$407 million).[3]

Data centres

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As of December 2021, MTN Uganda maintained six data centres spread across the country, where communication data is collected, distributed, controlled and monitored. Two of the centres are located at Mutundwe and Mbuya, in Kampala, the capital city. The other four data centres are located at Mbarara, Masindi, Lira and Tororo. Through these centres and approximately 2550 communications data masts in the country MTNU provides 72 percent landmass coverage translating into 92 percent population coverage in Uganda. In compliance with its licensing terms, MTNU plans to increase landmass coverage from 72 percent in 2021 to 90 percent in 2023.[40]

Recent market share

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In July 2022, The EastAfrican reported that MTN Uganda controlled 47.5 percent of the mobile telephone market in the county, at the end of 2021. At that time its subscriber base was 16.7 million accounts. Competitors include Airtel Uganda, Uganda Telecom and Lycamobile Uganda.[41] As of May 2024, MTN Uganda customer base had increased to 20 million.[7]

See also

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References

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  1. ^ Baike, Prisca (21 October 2018). "MTN Uganda Through The Years". New Vision. Kampala. Retrieved 2 May 2019.
  2. ^ a b c Techjaja (4 October 2022). "MTN Uganda's New CEO, Sylvia Mulinge Assumes Office". Techjaja.com. Kampala, Uganda. Retrieved 5 October 2022.
  3. ^ a b c Christine Kasemiire (12 March 2020). "MTN yields to govt pressure, agrees to pay $100m for license renewal". Daily Monitor. Kampala. Retrieved 15 March 2020.
  4. ^ Eronie Kamukama (4 October 2017). "Telecoms scramble for subscribers". Daily Monitor. Kampala, Uganda. Retrieved 4 October 2017.
  5. ^ Haggai Matsiko (15 January 2018). "Uganda: MTN Licence Expires, Rivals Fight Renewal" (via AllAfrica.com). The Independent (Uganda). Kampala, Uganda. Retrieved 30 January 2018.
  6. ^ The Independent Uganda (6 October 2021). "Fears over MTN, Airtel dominance in Uganda's telecom sector". The Independent (Uganda). Kampala, Uganda. Retrieved 7 October 2021.
  7. ^ a b Daily Monitor (2 May 2024). "MTN Uganda Hits 20 Million Customer Milestone". Daily Monitor. Kampala, Uganda. Retrieved 10 May 2024.
  8. ^ MTN Uganda (2 May 2019). "MTN Uganda: Contact Us - Help Channels". MTN Uganda. Kampala. Retrieved 2 May 2019.
  9. ^ "Location of the Headquarters of MTN Uganda" (Map). Google Maps. Retrieved 2 May 2019.
  10. ^ Khisa, Isaac (12 June 2016). "Sh380 Billion: New MTN Headquarters, Countrywide Optic Cable". The Independent (Uganda). Kampala.
  11. ^ Othman Semakula (21 June 2016). "MTN appoints new group chief after Nigeria fiasco". Daily Monitor. Kampala. Retrieved 21 June 2016.
  12. ^ "Uganda: Inside MTN Mobile Money Saga". The Observer (Uganda) via AllAfrica.com. Kampala. 15 March 2015. Retrieved 21 June 2016.
  13. ^ Mark Keith Muhumuza (26 November 2015). "Telecoms rush to beat Sim card registration deadline". Daily Monitor. Kampala.
  14. ^ The Associated Press (4 March 2016). "MTN profits down 37 percent in 2015, blames Nigeria fine". The Seattle Times Quoting The Associated Press. Retrieved 21 June 2016.
  15. ^ Mark Keith Muhumuza (27 May 2016). "MTN secures Shs386b loan from local banks". Daily Monitor. Kampala. Retrieved 21 June 2016.
  16. ^ Khisa, Isaac (12 June 2016). "SH380Bn: New MTN headquarters, countrywide optic cable". The Independent (Uganda). Kampala. Retrieved 21 June 2016.
  17. ^ Mark Keith Muhumuza (10 August 2016). "Ugandans to save, apply for mobile money loans on phone". Daily Monitor. Kampala. Retrieved 7 November 2016.
  18. ^ Musinguzi, Bamuturaki (9 November 2018). "Mixed reaction as Tidal makes headway in Uganda". The EastAfrican. Nairobi. Retrieved 9 November 2018.
  19. ^ Dorothy Nakaweesi (21 June 2021). "MTN Exhausts 077, 078 Codes". Daily Monitor. Kampala. Retrieved 23 June 2021.
  20. ^ Wakabi, Michael (23 June 2018). "Drug maker CIPLA and telco MTN to list on Uganda bourse". The EastAfrican. Nairobi. Retrieved 24 June 2018.
  21. ^ The EastAfrican (26 March 2019). "Banking stocks rise against the tide at Uganda bourse". The EastAfrican. Nairobi. Retrieved 26 March 2019.
  22. ^ Raymond Tamale (14 March 2020). "MTN Uganda to pay $100m in taxes, list 20pc shares for long-term licence". The EastAfrican. Nairobi. Retrieved 16 April 2020.
  23. ^ "Uganda opens MTN share sale to East African investors" (BDA Quoting Reuters). Business Daily Africa (BDA). Nairobi. 24 July 2020. Retrieved 24 July 2020.
  24. ^ Brian Ngugi (5 October 2021). "MTN to open KSh132bn Uganda IPO to Kenyan investors". Business Daily Africa. Nairobi, Kenya. Retrieved 5 October 2021.
  25. ^ Victor Juma (27 May 2024). "MTN Uganda's parent offers major discount in sale of Sh7.7bn shares". Business Daily Africa. Nairobi, Kenya. Retrieved 27 May 2024.
  26. ^ a b c d e f g h i Prisca Wanyenya (3 December 2021). "Harvest Is Good! MTN Raises Shs535Bn In Shares Listing". Red Pepper. Mukono, Uganda. Retrieved 5 December 2021.
  27. ^ Martin Luther Oketch (7 December 2021). "Uganda: Delight As MTN Uganda Lists On Stock Market" (via AllAfrica.com). Daily Monitor. Kampala, Uganda. Retrieved 8 December 2021.
  28. ^ a b c d e f g h i j k l Deogratius Wamala (21 June 2024). "NSSF Buys 43.3 Percent Of MTN'S Unsold Shares". Daily Monitor. Kampala, Uganda. Retrieved 22 June 2024.<
  29. ^ Daily Monitor (29 June 2024). "MTN Uganda Stock: Hope, Concerns Live Side By Side". Daily Monitor. Kampala, Uganda. Retrieved 29 June 2024.
  30. ^ The Independent Uganda (9 July 2024). "NSSF Earns Shs 80.6 Billion From Investment In MTN Uganda". The Independent (Uganda). Kampala, Uganda. Retrieved 9 July 2024.
  31. ^ Monitor Reporter (15 February 2019). "Gordian Kyomukama appointed MTN Uganda acting CEO". Daily Monitor. Kampala. Retrieved 23 March 2019.
  32. ^ a b Risdel Kasasira (31 May 2019). "How deported MTN boss return was negotiated". Kampala, Uganda. Retrieved 15 March 2020.
  33. ^ Philomela Matsiko (9 August 2016). "MTN Uganda takes on banks with micro-loans product". The EastAfrican. Nairobi. Retrieved 10 August 2016.
  34. ^ Godfrey Olukya (15 February 2019). "Uganda deports telecom giant CEO over national security". Anadolu News Agency. Çankaya, Ankara, Turkey. Retrieved 5 October 2021.
  35. ^ The EastAfrican (15 February 2019). "Uganda deports MTN CEO Wim Vanhelleputte". The EastAfrican. Nairobi. Retrieved 23 March 2019.
  36. ^ Daily Monitor (4 March 2019). "Deported MTN-Uganda CEO sues government". The EastAfrican Quoting Daily Monitor. Retrieved 23 March 2019.
  37. ^ Kikonyogo Douglas Albert (15 January 2019). "MTN Uganda's license in uncertainty over renewal fees". Kampala: Techjaja.com. Retrieved 13 March 2020.
  38. ^ Raymond Tamale (14 March 2020). "MTN Uganda to pay $100m in taxes, list 20pc shares for long-term licence". The EastAfrican. Nairobi. Retrieved 15 March 2020.
  39. ^ New Vision (11 July 2020). "UCC grants MTN 12-year licence extension". New Vision. Kampala. Retrieved 14 July 2020.
  40. ^ Red Pepper Reporter (11 December 2021). "MTN Hosts ICT Ministry For Site Visit At Mutundwe Data Centre". Red Pepper Newspaper. Mukono, Uganda. Retrieved 12 December 2021.
  41. ^ Esiara Kabona (2 July 2022). "Tough times in telcos sector as new MTN boss Sylvia Mulinge takes office". The EastAfrican. Nairobi, Kenya. Retrieved 2 July 2022.
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00°19′10″N 32°35′53″E / 0.31944°N 32.59806°E / 0.31944; 32.59806

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