MTN Uganda has announced their 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 tosell 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 throughensuring 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.
MTN Group Vice President for Southern and East Africa Yolanda Cuba called the planned listing a milestone:
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, bothrural 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. They 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 UGX 700 billion to the government treasury through taxes paid on our own account and as a withholding agent of government, making them the largest taxpayer in Uganda for the past decade.
They have over 1,000 direct employees and employ another 150,000 indirectly. Through their widespread distribution network, they provide a livelihood to more than 500,000 people, making MTN one of the largest employers in the country.
Feature image: Keith Kalyegira the Chief Executive Officer of Capital Markets Authority gives his remarks at the MTN Uganda Intention to float announcement at the Kampala Serena Hotel.
