Author: Greg Davies
As part of our commitment to protect the health and safety of our people and workplaces, as well as contribute towards the rate of COVID-19 vaccinations across our markets, MTN Group will be implementing a mandatory vaccination policy for staff from January 2022.
“The science is clear. Vaccination against COVID-19 reduces rates of serious infections, hospitalisation, and death. As an employer, we have a responsibility to ensure that our workplaces are guided by the highest standards of health and safety, and that has informed our decision to make COVID-19 vaccination mandatory for our staff,” said MTN Group President and Chief Executive Officer Ralph Mupita.
“Our new COVID-19 policy recognises that some of our markets don’t have adequate access to vaccines. It also recognises some low-risk roles that will be accommodated with full-time work-from-home or alternate arrangements, but this will be a small population within our workforce,” he added.
Both the World Health Organization and the Africa Centres for Disease Control advocate for vaccines – saying that they are an important measure to protect people. The global rollout of vaccinations since 2020 has clearly contributed to the containment and management of the virus in many countries.
“Vaccine equity continues to be a major issue for African countries. As MTN, we add our voice to the calls for more vaccines to be made available to African countries, as herd immunity will only happen when the whole globe has reached a sufficient level of COVID-19 vaccination,” said Mupita.
“The latest travel bans on African countries by developed nations are not based on science, are unjust and add to the lack of support for Africa that is much needed for an effective global response to the pandemic. African countries are being punished for the very transparency that’s actually needed to successfully combat the impact on lives and livelihoods of the COVID-19 virus,” he added.
The latest data shows that across the continent, only 7% of Africans have been fully vaccinated. This compares with a global population vaccination rate of 55%. “The fight against COVID-19 needs a global, comprehensive and equitable allocation of vaccines,” he added.
MTN Group’s new vaccine policy is a measure to meet MTN’s legal obligations in regard to providing a safe workplace and shall be subject to risk assessment and local laws that apply to the MTN Group and our operating companies and subsidiaries.
It also recognises the right of employees to apply to be exempted from the policy and/or refuse vaccination on certain clearly defined grounds. For those staff who are not exempt from vaccinations either through risk assessment or agreed exclusions but still refuse vaccination, MTN will not be obliged to continue the employment contract.
The new mandatory vaccination policy follows the Group’s US$25 million donation to the African Union’s COVID-19 vaccination programme.
MTN Group on Friday launched the construction of a state-of-the-art headquarters for MTN Côte d’Ivoire, as well as the start of a local trial of 5G services in Abidjan. Both took place during a state visit to the West African country by South African President Cyril Ramaphosa.
After the conclusion of the Côte d’Ivoire-South Africa Business Forum in which MTN participated, a foundation stone-laying ceremony was held at a site at the Akwaba Business Park in Port Bouët. It was attended by President Ramaphosa and Ivorian Prime Minister Patrick Achi. Both lauded MTN’s pan-African strategy and the Group’s contribution to Côte d’Ivoire in the past 16 years.
“The construction of this head office is indicative of MTN’s long-term commitment to Côte d’Ivoire,” said MTN Group Chairman Mcebisi Jonas, who led the MTN delegation alongside Group President and Chief Executive Officer Ralph Mupita.
“Our strategic intent is to provide leading digital solutions for Africa’s progress, and our presence here today illustrates the importance of MTN Côte d’Ivoire to the Group’s overall portfolio,” said Mupita, adding that MTN had operated in the country since 2005.
He was accompanied in Abidjan by an MTN Group team including West and Central Africa Vice President Ebenezer Asante, who launched the 5G trial earlier on Friday, and Group Executive for Corporate Affairs & Sustainability Nompilo Morafo. During the visit, the MTN delegation met with various stakeholders, including the Minister of Communications Roger Adom.
Côte d’Ivoire is the second country the MTN Group delegation is visiting on President Ramaphosa’s tour of West Africa, which started in Nigeria.
MTN Group owns 58.8% of MTN Côte d’Ivoire, which is one of three mobile operators in the country, with a market share of around 35%. At the end of June 2021, it had 13.7 million subscribers, of whom 4.9 million were active data users. It had 4.8 million active Mobile Money (MoMo) subscribers, making it one of the Group’s top MoMo operating companies.
MTN Nigeria Communications Plc (MTN Nigeria) is pleased to announce the launch of a nationwide roadshow to engage interested retail investors in the on-going offer by MTN Group for shares in MTN Nigeria. The first event of the roadshow was today in Abuja.
MTN Group Chairman Mcebisi Jonas and MTN Group President and CEO Ralph Mupita attended the roadshow, which is being held on the sidelines of the state visit to the Federal Republic of Nigeria by South African President Cyril Ramaphosa. Both countries are also participating in the 10th Bi-National Commission.
Jonas said the offer to retail investors to buy shares in MTN Nigeria was a milestone: “We are delighted to be here to mark this momentous event and would like to express our thanks to the regulator and MTN Nigeria’s broader stakeholder base for their support over the years. MTN is a pan-African company which works to deepen inclusion and create shared value.”
Mupita said the MTN Group had made a clear strategic decision to build shared value across operations: “The best way we can do that is by enabling broad ownership in our operating companies. This offer is the first phase of that process in Nigeria, as we progressively reduce our shareholding from 78% to 65% over time. I am incredibly proud to be able to be here today, engaging directly with the Nigerian shareholders we hope will join us on the next phase of our journey.”
MTN Nigeria Chairman Ernest Ndukwe said the company’s success over the past 20 years would not have been possible without a supportive operating environment. “This MTN story is also a demonstration of the opportunity that Nigeria represents for investors,” he said.
MTN Nigeria CEO Karl Toriola said the offer had been structured to be available to as many Nigerian investors as possible: “Today’s roadshow in Abuja is the first in a schedule that takes us to every state of the Federation over the next two weeks. It is really important for us to provide Nigerians across the country with the opportunity to engage with us as we build a shareholder base that is nationally representative.”
The offer opened at 8:00am on 1 December 2021 and will close at 5:00pm on 14 December 2021. The minimum subscription is for 20 shares and lots of 20 shares thereafter. The offer includes an incentive in the form of 1 free share for every 20 shares purchased, subject to a maximum of 250 shares per investor. The incentive is open to retail investors who buy and hold the shares allotted to them for at least 12 months after the allotment date.
Investors are able to submit applications through the issuing houses, receiving agents (authorised stockbrokers and Nigerian banks) and online via a unique digital application platform, PrimaryOffer, administered by the Nigerian Exchange Limited.
Further details and a full directory of authorised receiving agents are at www.mtnonline.com/PO.
MTN Group is pleased to announce that the Securities and Exchange Commission (SEC) has approved an offer for sale of up to 575 million ordinary shares in MTN Nigeria, by way of a bookbuild to qualified investors (Institutional Offer) and a fixed price to retail investors (Retail Offer).
The Institutional Offer opens on 23 November 2021 and closes at 15.00 SAST on 26 November 2021, after which a fixed price will be determined for the Retail Offer. The Retail Offer is proposed to open after the Institutional Offer, and an announcement will be published in this regard once clearance is obtained from the SEC.
“MTN Group is pleased with the launch of this public offer. This is the first step in a series of offers over the near to medium-term for MTN Group to sell-down a total of up to 14% shareholding in MTN Nigeria. This should result in greater ownership by Nigerian institutional and retail shareholders, and increased liquidity of the share on the Nigerian Stock Exchange.” said Group President and Chief Executive Officer Ralph Mupita.
MTN Group currently holds 78.8% shareholding in MTN Nigeria.
MTN Group today announces the Group’s exit from our operation in Yemen in a transaction that furthers the delivery of our Ambition 2025 strategy and is in line with our intention – first announced in August 2020 – to exit the Middle East.
Effective 17 November 2021, MTN Group transferred our majority shareholding in MTN Yemen to Emerald International Investment LCC. Emerald is a subsidiary of Zubair Investment Center LLC, an affiliate of Zubair Corporation LLC, which is the minority shareholder in MTN Yemen.
“The decision to exit Yemen was driven by a need to simplify the portfolio and focus our limited resources on executing a pan-African strategy,” said MTN Group President and Chief Executive Officer Ralph Mupita.
“We would like to thank the 719 employees of MTN Yemen for their commitment over the years, and the 4.7 million subscribers of MTN Yemen for their custom and trust in the brand. We wish Emerald well in the next phase of development of this business as they work with the team that served MTN well over the years.”
In August 2020, MTN Group announced plans to focus on our pan-African strategy and exit the Middle East over the medium term, thereby simplifying our portfolio and reducing risk. In the first half of 2021, MTN Yemen contributed 0.3% to MTN Group EBITDA. MTN Group held 82.8% of the shares in MTN Yemen, whose operating licence for its 2G network is due for renewal at the end of 2021.
MTN Group is today pleased to announce a solid set of third quarter operating results, plans for a public offer of shares in MTN Nigeria, progress in finalising a passive infrastructure deal for MTN South Africa as well as in our work to create shared value across our 20 markets, with ESG at the core.
For the quarter to end-September 2021, the Group also reduced debt and holding company leverage, recorded strong financial results in line with medium-term guidance and advanced the delivery of our Ambition 2025 strategy.
“It’s been a busy quarter, and I’m particularly pleased with the sustained operational momentum across our businesses,” said MTN Group President and Chief Executive Officer Ralph Mupita.
“Material progress was made in accelerating the deleveraging of the holding company balance sheet, and our asset realisation programme and portfolio optimisation priorities are progressing well. The process of structurally separating our fintech and fibre assets remains on track.”
He added that the debt reduction led to S&P upgrading MTN’s standalone credit rating to investment grade – a level last achieved five years’ ago.
At period-end, the group subscriber base was 272m.
Driven by continued strong growth momentum in major markets Nigeria, Ghana and South Africa, MTN Group’s service revenue ramped up 19.1% to R125 billion in the first nine months of the year. Data and fintech service revenue increased by 34.5% and 35.0% respectively. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 24.1%, with margins expanding 2.1 percentage points to 45.0% on a constancy-currency basis.
We advanced financial inclusion, reaching 51 million Mobile Money customers in 16 markets, processing almost 20 000 transactions a minute, with the value of transactions up 67.2% year-on-year to US$175.5bn.
As part of our asset realisation programme, the listing of IHS was an important milestone, creating a liquidity platform for the future to deleverage further. Our further localisation in Uganda with the intention to sell 20% of the Group’s holding in MTN Uganda is in progress.
We are also announcing a public offer of just under 3% of shares in MTN Nigeria as part of the statement of intent communicated previously to further localise 14% of the Group’s holding in MTN Nigeria over the medium term. MTN South Africa is making good progress with a sale and leaseback of its towers.
Aligned to our commitment to achieve net zero by 2040, we started working with the Science-Based Targets initiative to reduce our emissions in line with climate science. In joining Business Ambition for 1.5°C, MTN became part of the UN-backed Race to Zero campaign. In recognition of the strides made in governance practices, our MSCI ESG rating was upgraded to ‘A’ from a rating of ‘BBB’.
Looking ahead, Mupita was encouraged that the number of new COVID-19 cases across Africa had started to slow, but said the pandemic continued to impact lives and livelihoods and demand for mobile services: “It highlights the vital importance of telecommunications as people rely on these services for information and to work, learn and entertain from home. We as MTN are well positioned to deliver and will invest in line with our capital allocation framework to capture these opportunities.”
MTN Group is pleased to announce that progress in reducing our holding company debt has been recognised by rating agency S&P Global Ratings, which has upgraded the Group’s standalone credit rating to investment grade.
S&P has revised MTN’s standalone credit profile to bbb- from bb+, citing progress made in deleveraging the balance sheet and on the expectation that MTN will not return to higher levels of leverage. A standalone rating excludes S&P’s view of government influence and sovereign risk.
“We are very encouraged that our work to reduce debt has been recognised, with a move up to investment grade,” says MTN Group Chief Financial Officer Tsholofelo Molefe. “Faster deleveraging of our holding company balance sheet is a critical element of our Ambition 2025, and today’s announcement is another important indicator that we are on track with the delivery of our strategy.”
The last time MTN Group had an investment grade rating was five years ago, in 2016. By reducing debt, MTN has greater financial flexibility to take advantage of the attractive growth opportunities that we have identified. Central to reducing debt is our asset realisation programme which aims to realise proceeds of more than R25 billion by 2025.
In line with our Ambition 2025, our medium-term guidance includes a target to achieve leverage ratio of the holding company of less than 1.5x. At the end of June 2021, MTN’s holding company leverage improved to 1.4x from 2.2x at end-December 2020. This was supported by significant progress in upstreaming cash from our operating companies, including from Nigeria.
On Friday, S&P also affirmed MTN’s BB- long-term issuer credit rating, with a stable outlook.
To access the published SENS, please click here
MTN Group is humbled to be recognised as the leading African company on the Forbes World’s Best Employers list for 2021.
As part of the survey, employees from across 58 countries were asked to rate multi-national employers on aspects such as image, economic footprint, talent development, gender equality and social responsibility.
The complete list features 750 companies. For MTN, this year’s rankings represent a significant improvement in various areas. Overall, we’ve improved from position 419 in 2020, to 132 in 2021. We have also moved up nine places in the global telco rankings, to the second spot.
“This acknowledgement comes at a time when our sector is at the forefront of the changes that are happening in the world,” says MTN Group President and CEO Ralph Mupita. “In a year when we launched our ‘Ambition 2025’ strategy and ‘Live Inspired’ employee value proposition, we are excited that this accolade – as with many others we’ve received – will serve to re-affirm and inspire people around our ambitions.”
“We are humbled to receive this influential global recognition by Forbes,” says Paul Norman, MTN Group Chief Human Resources Officer.
“As people have found it difficult to be together physically, we’ve had to step up as an industry to connect them with each other, connect companies with their people and customers, and of course, enable the delivery of new and essential services to communities. To achieve this, we’ve relied on our people, their skills, innovation and can-do spirit that continues to shine bright alongside our brand.”
Through our Live Inspired EVP, we aim to provide our employees with future skills, create a diverse and inclusive workplace and contribute to a sustainable environment.
To view the full Forbes World’s Best Employers 2021 list, please go here
MTN Group has received recognition on the 2021 Fortune Change the World list. The Change the World List is a global ranking of the top 53 companies that make a measurable progress addressing pressing social problems as part of their business strategy.
“MTN is humbled to be recognised on the Fortune Change the World list. We are committed to changing the world through meaningful contributions to the societies across the markets in which we operate,” says MTN Group President and CEO Ralph Mupita. “Our networks, products, and services are supplied with the intention of closing the digital divide by facilitating digital communications and financial inclusion.”
The publishers of the Change the World list have noted that many of this year’s honourees are battling to reverse the neglect of some societal needs, as magnified by the pandemic. These companies are investing in the long-term health of their businesses by supporting those on the lower stages of the global economic ladder, including distributing COVID-19 vaccines in low- and middle-income nations.
Since the start of the spread of COVID-19, MTN has remained committed to playing a part in the ongoing fight against the pandemic through our global mask wearing awareness campaign #wearitforme and #onemorepushafrica. Heeding the call for vaccinations across the African continent, MTN donated US$25 million to support the African Union’s COVID-19 vaccination programme. The donation to Africa Centres for Disease Control and Prevention (Africa CDC) will help secure up to seven million doses of the COVID-19 vaccine for health workers on the continent.
Also noted during the pandemic, the urgent need to stay connected, saw data traffic soaring by 110% in 2020. MTN was able to address gaps in connectivity by improving the affordability of its services, whilst providing digital and financial solutions to consumers and businesses, and helping to drive digital inclusion to the most vulnerable and marginalised communities on the African continent.
For MTN, better connectivity doesn’t mean less eco-responsibility. MTN works with its partners to make sure we limit our environmental impact and safeguards biodiversity around every cell tower we build. MTN has also set science-based targets of reducing greenhouse gas emissions by 47% by 2030 and achieving net-zero emissions by 2040.
For us, this is about being part of the long-term solution, harnessing the power of partnerships to act swiftly to address the challenges brought on by the pandemic, whilst prioritising our people, customers, and communities, as well as looking after our businesses and the environment. It is for this reason, we continue to believe in the power of collective action to make a meaningful difference, focusing our efforts where needs are greatest.
Read more:
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How a pan-African company is connecting the world—responsibly
MTN Group is pleased to announce the appointment of Adekunle Awobodu as our new Chief Financial Officer for Digital and Fintech.
Kunle is a seasoned business and finance professional who has spent most of his career at MTN, including serving as CFO for MTN Nigeria and for the MTN Irancell joint venture.
“We are thrilled that Kunle has joined the dynamic DigiFin team and look forward to what we know will be a valuable contribution,” says MTN Group Chief Digital and Fintech Officer Serigne Dioum.
In his 22 years in management roles, Kunle has built processes, teams and dealt with regulatory and compliance issues. Most recently, from 2019 to 2021, he was an Executive Consultant at MTN Nigeria, where he led Oracle implementation and provided support to the CEO and CFO on various financial, tax and accounting matters.
Kunle is a certified General Accountant and has a Bachelor’s degree in Finance and Banking from the University of Lagos, as well as a Master’s in Finance from the University of Leicester. He also holds several professional certifications.
As CFO for Digital and Fintech, effective 15 September 2021, Kunle’s responsibilities include ensuring the growth of these platforms in line with the Group’s strategic intent – Ambition 2025: Leading digital solutions for Africa’s progress.