MTN Group’s deleveraging progress recognised with S&P rating upgrade

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 the leading African company on the Forbes World’s Best Employers 2021 list

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 receives recognition on the Fortune’s Change the World list

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:

These companies are changing the world

How a pan-African company is connecting the world—responsibly

MTN announces appointment of seasoned executive as Digital and Fintech CFO

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.

MTN Uganda announces intention to float 20% of its shares on the Uganda Securities Exchange

  • This will potentially be the largest IPO on the Ugandan market and will be delivered primarily through a digital paperless/ green platform which is the first of its kind in East Africa.
  • The offer and listing of MTN Uganda is in line with MTN Group’s localisation plans to drive local ownership in the markets within which MTN operates.
  • It is also in line with the policy objectives of the Government of Uganda as articulated in the National Broadband Policy (2018)and the Uganda Communication (Licensing) Regulations S. I No. 95 of 2019.

MTN Uganda is pleased to announce our intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE).  This follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20% of its shareholding in MTN Uganda to the public. MTN Group owns 96% of MTN Uganda.

The listing is in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda’s NTO licence, which require its listing by end-June 2022.

“The intention to float announcement is a major step towards delivering on our plan to list on the USE,” said Charles Mbire, Chairperson of the Board of Directors, MTN Uganda. “It is a reaffirmation of our long-term commitment to expand investment opportunities for Ugandans and we look forward to continuing our engagement with the CMA and USE to take forward the IPO and the listing.”

MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone: “Over the last 23 years, the people of Uganda have embraced MTN as their own and given us the legitimacy to operate throughout this country. We are reciprocating by inviting Ugandans to share in the ownership of the success that we have built together.”

In 1998, licence in hand, MTN Uganda commenced the rollout of our infrastructure and services. We provided affordable access to the people through a widespread voice and data network, investing UGX3.5 trillion in infrastructure development across the 134 districts of Uganda, both rural and urban. To facilitate universal access, we continue to contribute 2% of our gross annual revenue to the Uganda Communication Commission.

Over the years, MTN Uganda has prioritised the expansion of rural coverage. We currently cover 97% of the country’s population and have over 6,000km of fibre connectivity to provide the voice and data bandwidth that connects more than 15 million subscribers not only within the country but also across the world.

The growth in mobile penetration in Uganda from 0.27% in 1998 to 67% as of March 2021 is proof of MTN’s contribution to democratise mobile telephony. The fruits of this are evident in the widespread adoption of key technology platforms powered by high-speed connectivity, which enable the creation, distribution, and consumption of a wide range of digital services.

MTN Mobile Money (MoMo) has also revolutionised the financial landscape. Formal financial inclusion has nearly doubled from 28% in 2009 when MoMo was introduced in Uganda to 58% as of 2018.

MTN Uganda contributes an annual average of approximately UGX700 billion to the government treasury through taxes paid on our own account and as a withholding agent of government, making us the largest taxpayer in Uganda for the past decade.

We have over 1,000 direct employees and employ another 150,000 indirectly. Through our widespread distribution network, we provide a livelihood to more than 500,000 people, making MTN one of the largest employers in the country.

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