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MTN marks three decades of operations, celebrating a legacy of connecting people, changing lives, and driving economic growth across South Africa and the African continent.
“As we reflect on this significant milestone, we express our sincere gratitude to all our stakeholders, past and present, across multiple jurisdictions, for their support,” said MTN Group President and Chief Executive Officer Ralph Mupita. “We couldn’t have achieved this remarkable success without you.”
Since its inception in 1994, MTN has evolved from a small South African start-up with 20 employees into a global telecommunications leader, employing over 17,500 individuals representing more than 70 nationalities across 18 diverse markets.
In South Africa, MTN’s impact has been profound. The company’s network now reaches 97% of the population, providing a foundation for digital inclusion and economic empowerment. By investing in cutting-edge technologies like 4G and 5G, MTN has ensured that South Africa remains at the forefront of technological advancement. A recent study by KPMG showed that MTN South Africa’s contribution to the country’s GDP is substantial, making it a key player in the national economy.
The evolution of handsets and the proliferation of apps have democratised access to information and essential services, from financial solutions to healthcare, education, and entertainment. This has been a game-changer for individuals and businesses alike.
MTN’s influence extends far beyond South Africa. In 2023, the MTN Group recorded over R220 billion (more than US$11 billion) in revenue, a testament to its market leadership and the growing demand for digital services across Africa. This success has driven the company’s market capitalisation to over R150 billion, solidifying its position as one of the continent’s most valuable companies.
Across Africa, MTN connects millions, empowering them with essential communication tools and access to vital services. More than 149 million people rely on MTN’s network for data access, fuelling a digital transformation that is reshaping industries and societies. Additionally, MTN Mobile Money (MoMo) provides over 65 million individuals with access to financial services, driving financial inclusion and economic empowerment in underserved communities.
MTN’s commitment to socio-economic development is evident everywhere. In 2023, the Group’s total tax contribution to governments across markets was nearly R62 billion (over US$3.3 billion), supporting vital public services and infrastructure development. MTN’s operations also generated some R159 billion in economic value, creating jobs, stimulating economic activity, and fostering digital innovation.
From the outset, the Group has been driven to make a social impact. Launched in 2001, the first MTN Foundation had an annual budget of R22 million. In 2023, MTN spent ten times that – R220 million – in corporate social responsibility across markets, with a special focus on developing digital skills to enable the digital economy.
Furthermore, both MTN Group and MTN South Africa have achieved Level 1 Broad-Based Black Economic Empowerment status, underscoring their commitment to diversity, inclusion, and social transformation.
MTN’s dedication to giving back is embodied in the annual “21 Days of Y’ello Care” initiative, which has been extended to 30 days this year to commemorate the 30th anniversary. Kicking off on 01 June 2024 under the theme “Learn Today, Lead Tomorrow: Education for Rural and Remote Communities,” this initiative mobilises MTN employees across the continent to dedicate their time and resources to enhance educational opportunities. This year, the focus is on bridging the educational divide in rural and remote areas, providing digital learning tools, and supporting educational infrastructure to empower the next generation of leaders within these communities.
MTN’s 30-year journey is a testament to the transformative power of technology and the unwavering spirit of innovation. Looking to the future, MTN remains dedicated to bridging the digital divide, empowering individuals and communities, and driving Africa’s sustainable and inclusive progress through cutting-edge digital solutions.
MTN Group reported a resilient underlying operating performance for 2023 in the face of tough macro headwinds, declaring a total dividend of 330 cents per share. Inflation remained elevated in several key markets and the sharp devaluation of the Nigerian naira impacted reported results for both MTN Nigeria and MTN Group.
Amid sustained high demand for data and fintech services, MTN Group increased the number of active data subscribers by more than 9% to 150 million – half the total subscriber base – and active Mobile Money (MoMo) users by 5% to 72.5 million. Total subscribers increased to 295 million across the Group’s markets.
In the year to end-December 2023, data traffic on MTN’s networks (excluding joint ventures) grew by more than a third, with usage up to an average of more than 6GB per user per month. To sustain this growth, as well as network coverage and quality, MTN deployed capital expenditure (excluding leases) of R41 billion in the year.
The volume of fintech transactions also increased by around a third to 17.6 billion, with the value of transactions across the fintech platform up at US$272 billion, driven by growth of advanced services in payments, banktech and remittance solutions.
In South Africa, where the business faced loadshedding challenges, subsidiary MTN South Africa deployed R10 billion of capex to drive network capacity expansion and power resilience. More than R2.6 billion of this was investment in power and security resilience. By the end of the year, network availability across the entire network reached around 95%. For the sites where we had completed our resilience investment, we recorded network availability of more than 98%.
MTN South Africa reported solid growth in the consumer postpaid, enterprise and wholesale businesses. In the second half of the year there were also sequential improvements in the consumer prepaid business.
Strategic delivery
In the year, MTN Group made good strategic progress in the development of our fintech and fibre businesses. A key highlight was concluding an agreement for payment network processor Mastercard to invest up to US$200 million for a minority stake in MTN Group Fintech at a valuation of US$5.2 billion.
“We are excited about this partnership, particularly the commercial agreements, which we expect to support the accelerated growth of our fintech business,” said MTN Group President and CEO Ralph Mupita. “In 2023, we also advanced our work to structurally separate the fibre business, Bayobab, with engagements to secure regulatory clearances in key markets being the main priority.”
In the year, Bayobab and Africa50 partnered to develop Project East2West, a terrestrial fibre optic cable network to help bridge Africa’s connectivity gap by improving broadband access for the continent’s landlocked countries in particular.
Among the Group’s other strategic progress highlights were the 13.1% absolute reduction in Scope 1 and 2 emissions. This is part of our environmental commitment to reach Net Zero emissions by 2040. We also finalised the sale of MTN Afghanistan, which completed the Group’s exit of our consolidated subsidiaries in the Middle East.
Resilient results
In the year, MTN Group’s finances withstood a challenging external environment, marked by elevated inflation (averaging a blended 16.7%), forex volatility and paucity, and ongoing political tensions in some markets, most notably in Sudan.
In constant currency terms, MTN Group service revenue grew 13.5% to R210 billion, with data revenue making up R84 billion and voice revenue contributing R83 billion. Fintech revenue totalled R21 billion.
Earnings before interest, tax, depreciation and amortisation grew by almost 10% in constant currency terms to R90 billion. The Group delivered expense efficiencies of R2.6 billion and kept key debt ratios within covenant levels.
Outlook and priorities
Looking ahead, Mupita said MTN remained focused on executing on Ambition 2025: sustaining operational momentum, accelerating the platforms strategy, driving expense and capital efficiencies, and continuing to strengthen the balance sheet.
“We are anticipating that the macro conditions in our trading environment will persist in 2024, with naira volatility and elevated inflation the key challenges we will need to navigate. MTN plans to invest R35-39 billion in 2024 to position the company to capture the structural demand for data and fintech services across Africa,” he said.
“We maintain our overall medium-term guidance framework, however simplifying our objective for fintech,” Mupita said, adding that MTN was encouraged by the outlook for the fintech business, given the solid growth in advanced services. “The partnership with Mastercard positions the business well to scale faster and we are excited about the commercial launches of card issuance, acceptance and remittances across the footprint.”
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, Africa’s leading telecommunications company, is thrilled to announce its upcoming SME hybrid event aimed at fostering growth and providing essential resources to the continent’s small and medium-sized enterprises (SMEs). The two-day event, featuring a combination of physical and online components, will bring together industry experts, inspirational thought leaders, and innovative solutions to support the success of African businesses.
Scheduled to take place from the 23rd to the 24th of May 2023 at the company’s 14th Avenue Innovation Centre, this groundbreaking event will serve as a platform for SMEs to connect, learn, and showcase their products and services to a broader audience. The event will feature a live exhibition of SMEs and partner solutions, engaging activities such as the highly anticipated JumpStarter funding competition and insightful keynote speeches from influential industry figures.
MTN is committed to empowering SMEs by providing them with the necessary tools, resources, and support to thrive in a competitive business landscape. With this event, MTN aims to position itself as the leading brand dedicated to supporting the growth and success of over 40 million African SMEs through targeted development programs and a comprehensive range of services.
One of the event’s highlights will be the live exhibition, where selected SMEs will have the opportunity to showcase their innovative products and services to potential customers, investors, and partners. This platform will enable them to increase their visibility, expand their networks, and attract new business opportunities.
MTN’s commitment to supporting SMEs extends beyond the event itself. The company’s suite of services, including MoMo (Mobile Money), Digital, ayoba, and Chenosis, will be showcased during the event, demonstrating how these platforms can empower SMEs with convenient and secure financial transactions, digital marketing solutions, communication tools, and access to a broader customer base.
“MTN understands the critical role SMEs play in driving economic growth and job creation across Africa,” said Tumi Chamayou, MTN Group Executive: Enterprise. “We are proud to host this empowering event that brings together the brightest minds and resources to support the success of SMEs. Our goal is to position MTN as the go-to brand for African entrepreneurs seeking to thrive in today’s digital economy.”
As reported in its 2022 Sustainability report, MTN supported 1,250 small and medium-sized enterprises through its enterprise skills development initiative. This SME event is a further testament to the company’s unwavering commitment to empowering African SMEs and driving their success. By providing a platform for innovation, collaboration, and knowledge sharing, MTN aims to equip SMEs with the tools and support they need to thrive in today’s competitive business landscape.
For more information about the MTN SME event, including registration details and the full lineup of speakers and activities, please visit MTN EBU SME 2023
The leadership of the MTN Group kickstarted the year with our two-day annual virtual Global Leadership Gathering. The gathering provides an opportunity for us to reflect on the progress we have made to deliver on our ambitions, to recalibrate where necessary, and renew our commitment to lead digital solutions for Africa’s progress.
A future-fit business thrives when it can efficiently run world-class operations, adapt, and transform with the changing times, and constantly reinvent itself to remain relevant and sustainable. MTN has a tremendous responsibility to drive digital and financial inclusion in the communities we operate in. We have challenged ourselves to be bold and seize the opportunity to transform Africa’s future.
MTN Group President and CEO, Ralph Mupita, said: “MTN has a vision of providing leading digital solutions to support Africa’s progress, and we took very meaningful steps in realising this vision. The work we are doing is important for the progress of the communities we live and operate in. If Africa is to economically ‘leap-frog’, while delivering the benefits of a modern connected life to its people, MTN would have played a significant role in that progress.”
2021 achievements
It is important to highlight a few things as we reflect on the accolades received and the many accomplishments achieved in the previous year.
MTN started 2021 by stepping forward as the first private sector company to work with the African Union and contribute to securing much-needed vaccines for the African continent.
We have been recognised as one of the best companies to work for globally, following inclusion in the 2021 Forbes list of World’s Best Employers, while Fortune honoured the Group in its list of companies Changing the World.
The work we are doing around reducing our carbon emissions, driving financial inclusion, reducing the cost to communicate, improving diversity in the workplace and digital human rights has been acknowledged by international ratings agencies such as the FTSE and Sustainalytics.
We have retained our Net Promoter Score leadership positions in 15 markets, which is a clear indicator of success and how we serve our customers. To add to this, our share price has soared, up 184% when measured from the start to end of the year.
Progress on Ambition 2025
Our Ambition 2025 Strategy is focused on driving growth through building the largest and most valuable platform business with a clear focus on Africa. To this extent, we are reinventing ourselves for a sustainable future to the benefit of our customers.
According to Mupita: “The contribution of MTNers in the progress the company made, was achieved through a most challenging time, and I know you all dug deep and tapped into individual and collective reservoirs of strength, grit, and determination.”
“Our vital behaviours, values and culture provided us with a firm foundation of service, excellence and high-performance. We are well on the way to deliver on our strategic intents, as defined by our Ambition 2025 Strategy and the commitments we have made to our stakeholders.”
The successful execution of our Ambition 2025 Strategy will be defined by the operating structure and leadership team driving that strategy.
Operating structure and leadership changes
To ensure the Group is structured in a manner that drives delivery, we announced a new leadership structure and team in December 2021. In line with Ambition 2025’s strategic priorities, the Group has welcomed the following individuals to the ExCo team:
- Mazen Mroue as Group Chief Information and Technology Officer (CTIO),
- Nompilo Morafo as Group Chief Sustainability and Corporate Affairs Officer and
- Chika Ekeji as Group Chief Strategy and Transformation Officer.
Several changes were introduced to MTN’s operating structure and existing ExCo members have taken on new roles with expanded responsibilities. A Markets cluster was created, combining West and Central Africa (WECA), South and East Africa (SEA) and Middle East and North Africa (MENA) under one leadership. Ebenezer Asante is assuming the new role of Senior Vice President (SVP) of Markets and part of his focus will be to ensure seamless execution of the structural separation of the fintech and infraco assets within the Markets portfolio.
A decision was made to separate digital from the fintech priorities to enhance the capacity to accelerate the growth of MTN’s fintech and other platforms. In order to remain the leader in delivering financial inclusion in Africa, we need focus, agility, and pace in fintech. With the simplified structure under the leadership of Serigne Dioum as Group Chief Fintech Officer, we are set to drive the business forward at a faster pace.
MTN Group COO Jens Schulte-Bockum will drive an acceleration of digital, infraco, enterprise services, network as a service and Chenosis platforms. Jens and Serigne will work together closely to ensure strategic coherence and execution of both fintech and Africa’s SuperApp, ayoba.
These appointments illustrate our diversity of nationalities and bench strength of a team that is highly experienced and well-positioned to take the business forward as we deliver on our ambitions for growth and delivering value. The newly appointed Executive Committee leading MTN on this journey officially started in their roles on 1 February 2022.
We would also like to take this opportunity to thank Felleng and Godfrey who have made significant contributions to the Group Exco, and the progress we have seen in MTN over the last 5 years. We wish them well in their respective futures.
The full Executive Committee and their profiles can be seen at https://www.mtn.com/who-we-are/leadership/executive-committee/
MTN is extending its digital strategy with the launch of a new pan-African API marketplace called Chenosis that will enable developers and businesses to discover and subscribe to what will become the largest library of open APIs published on the continent.
Chenosis will enable developers to tap into a broad spectrum of API products and services from across the continent, ranging from telecommunications, e-health, e-government, IoT, fintech, e-commerce, identity and authentication, payments and collections, location and more, from a single marketplace.
“Chenosis is a separate brand and entity, and will have an arms-length relationship with MTN so that it remains open to all mobile network operators, fintech start-ups, payment service providers, mobile wallet operators, financial service providers, and more,” says Charles Molapisi, MTN Group Chief Technology and Information Officer.
The Chenosis Marketplace allows businesses and developers to publish their APIs so that other developers can discover and consume them. The marketplace also provides the tools for publishers to monetise and promote their APIs, by creating subscription plans and product bundles that developers and businesses can purchase. The Chenosis Marketplace portal has dashboards for publishers and consumers to track revenue and credit balances, view consumption analytics and API performance and lots more.
The power of the platform will be in the creation of mashup APIs which will connect cross-industry APIs and facilitate innovation and the ability to build new services and new business models. Mashups are new product and service orchestrations created by developers from two or more existing APIs.
“We have exciting pan-African and international partnerships lined up to publish and monetize their APIs in the marketplace over the coming months,” says Molapisi. “These partnerships will enable Chenosis to become the largest and most diverse developer ecosystem on the African continent.”
“This is one of the ways in which MTN is investing in the emergence of an open African API ecosystem that is powered by African ingenuity and innovation,” he adds.
The Chenosis Marketplace will be open to the public from 10th August 2020. Developers can get started by exploring the Chenosis Marketplace at www.Chenosis.io