MTN Uganda

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.[5][6] By 31 December 2019, its customer base had increased to 12.6 million customers.[4]

MTN Uganda
TypePrivate
IndustryTelecommunications
Founded21 October 1998 (1998-10-21)[1]
HeadquartersPlot 69-71 Jinja Road
Kampala, Uganda
Key people
Wim Vanhelleputte
CEO[2]
Gordian Kyomukama
Chief Technology Officer[3]
Services
RevenuePretax:USh1.5 trillion (US$407 million) (2019)[4]
Websitewww.mtn.co.ug

Location

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.[7] The coordinates of the company headquarters are 0°19'10.0"N, 32°35'53.0"E (Latitude:0.319444; Longitude:32.598056).[8]

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.[9]

Overview

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.[10] 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.[11]

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.[12][13]

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).[14][15]

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.[16]

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.[17]

Initial public offering

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).[18] That willingness to list, on the part of MTN Uganda, was again reported in March 2019.[19]

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.[20] 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.[21]

Governance

As of March 2019, the Acting Chief Executive Officer of the company is Gordian Kyomukama, previously the Chief Technology Officer[22] 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.[23]

Controversy

Wim Vanhelleputte was the chief executive officer.[24] He was suddenly deported from Uganda to his native Belgium on allegations of compromising Uganda's national security. This followed the deportation of three other MTN Uganda executives in the month of July, 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.[25] The former CEO has since sued the government of Uganda in Uganda's High Court.[26] 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.[23]

Licensing

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.[27] 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.[28]

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.[29]

Financials

In the 12 months ended 31 December 2019, MTN Uganda's gross revenue amounted to USh1.5 trillion (approx. US$407 million).[4]

See also

References
  1. Baike, Prisca (21 October 2018). "MTN Uganda Through The Years". New Vision. Kampala. Retrieved 2 May 2019.
  2. Michael Wakabi (30 May 2019). "Deported MTN Boss Returns To Uganda After Presidential Pardon". The East African. Kampala. Retrieved 30 May 2019.
  3. Uganda Radio Network (23 March 2019). "MTN Uganda advertises positions of deported staff". Daily Monitor Quoting Uganda Radio Network. Kampala. Retrieved 30 May 2019.
  4. Christine Kasemiire (12 March 2020). "MTN yields to govt pressure, agrees to pay $100m for licence renewal". Daily Monitor. Kampala. Retrieved 15 March 2020.
  5. Kamukama, Eronie (4 October 2017). "Telecoms scramble for subscribers". Daily Monitor. Kampala. Retrieved 4 October 2017.
  6. Matsiko, Haggai (15 January 2018). "Uganda: MTN Licence Expires, Rivals Fight Renewal". The Independent (Uganda) via AllAfrica.com. Kampala. Retrieved 30 January 2018.
  7. MTN Uganda (2 May 2019). "MTN Uganda: Contact Us - Help Channels". Kampala: MTN Uganda. Retrieved 2 May 2019.
  8. Google (2 May 2019). "Location of the Headquarters of MTN Uganda" (Map). Google Maps. Google. Retrieved 2 May 2019.
  9. Khisa, Isaac (12 June 2016). "Sh380 Billion: New MTN Headquarters, Countrywide Optic Cable". The Independent (Uganda). Kampala.
  10. Othman Semakula (21 June 2016). "MTN appoints new group chief after Nigeria fiasco". Daily Monitor. Kampala. Retrieved 21 June 2016.
  11. "Uganda: Inside MTN Mobile Money Saga". The Observer (Uganda) via AllAfrica.com. Kampala. 15 March 2015. Retrieved 21 June 2016.
  12. Mark Keith Muhumuza (26 November 2015). "Telecoms rush to beat Sim card registration deadline". Daily Monitor. Kampala.
  13. 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.
  14. Mark Keith Muhumuza (27 May 2016). "MTN secures Shs386b loan from local banks". Daily Monitor. Kampala. Retrieved 21 June 2016.
  15. Khisa, Isaac (12 June 2016). "SH380Bn: New MTN headquarters, countrywide optic cable". The Independent (Uganda). Kampala. Retrieved 21 June 2016.
  16. Mark Keith Muhumuza (10 August 2016). "Ugandans to save, apply for mobile money loans on phone". Daily Monitor. Kampala. Retrieved 7 November 2016.
  17. Musinguzi, Bamuturaki (9 November 2018). "Mixed reaction as Tidal makes headway in Uganda". The EastAfrican. Nairobi. Retrieved 9 November 2018.
  18. Wakabi, Michael (23 June 2018). "Drug maker CIPLA and telco MTN to list on Uganda bourse". The EastAfrican. Nairobi. Retrieved 24 June 2018.
  19. The EastAfrican (26 March 2019). "Banking stocks rise against the tide at Uganda bourse". The EastAfrican. Nairobi. Retrieved 26 March 2019.
  20. 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.
  21. Reuters (24 July 2020). "Uganda opens MTN share sale to East African investors". Business Daily Africa. Nairobi. Retrieved 24 July 2020.
  22. Monitor Reporter (15 February 2019). "Gordian Kyomukama appointed MTN Uganda acting CEO". Daily Monitor. Kampala. Retrieved 23 March 2019.
  23. Risdel Kasasira (31 May 2019). "How deported MTN boss return was negotiated". Kampala. Retrieved 15 March 2020.
  24. Matsiko, Philomena (9 August 2016). "MTN Uganda takes on banks with micro-loans product". The EastAfrican. Nairobi. Retrieved 10 August 2016.
  25. The EastAfrican (15 February 2019). "Uganda deports MTN CEO Wim Vanhelleputte". The EastAfrican. Nairobi. Retrieved 23 March 2019.
  26. Daily Monitor (4 March 2019). "Deported MTN-Uganda CEO sues government". The EastAfrican Quoting Daily Monitor. Retrieved 23 March 2019.
  27. Kikonyogo Douglas Albert (15 January 2019). "MTN Uganda's license in uncertainty over renewal fees". Kampala: Techjaja.com. Retrieved 13 March 2020.
  28. 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.
  29. New Vision (11 July 2020). "UCC grants MTN 12-year licence extension". New Vision. Kampala. Retrieved 14 July 2020.

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.