Africa’s biggest mobile operator MTN Group said on Monday that Ferdi Moolman, the current Group Chief Risk Officer, will succeed Charles Molapisi as CEO and Executive Director of MTN South Africa, as part of its strategic review and operating model changes.

Molapisi will take up his previous role as Group Chief Technology and Information Officer from November 1, the group said in a statement as it announced a slew of leadership changes.

Tsholofelo Molefe, the Group Chief Financial Officer, will have her responsibilities expanded to incorporate the mergers and acquisitions (M&A) portfolio.

Kholekile Ndamase, currently Chief M&A and Business Development Officer, will step down from the group executive committee and have a new reporting line to Molefe in her role as the steward for the capital allocation framework, MTN added.

Reuters

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South African mobile network operator MTN Group reported a 33% jump in first-quarter core profit due to strong service revenue growth, lower device cost of sales in its domestic market, and a more stable economic environment.

The jump in group earnings before interest, tax, depreciation and amortisation on a constant-currency basis in the quarter to end March reflects a 5.3 percentage point rise in margin to 44.1%, MTN said, without giving the value of EBITDA.

Group service revenue rose 10.4% overall in the quarter, or by 19.8% in constant currency terms. That was buoyed by 40.4% growth in MTN Nigeria and 39.5% in MTN Ghana.

MTN South Africa continued to face challenges, especially in the prepaid segment, the company said, with service revenue up 2.6%.

Customers “remained value-seeking and dynamic in the context of constrained economic growth and heightened competition in the sector”, the group said.

Its South Africa unit intends to explore collaboration with rival Vodacom on backup energy, the company said.

“This could result in benefits around the… supply of alternative energy in the sector, which is critical to the efficient and reliable operation of network operators,” MTN added.

The Department of Trade and Industry’s Energy Users Block Exemption allows energy users to collaborate in ways that might otherwise be prohibited by the Competition Act. This includes joint procurement of backup or alternative energy and sharing generation capacity.

Group President and CEO Ralph Mupita said the group is also strengthening its partnerships with low-earth orbit (LEO) satellite providers including Elon Musk’s Starlink, Franco-British satellite operator Eutelsat’s OneWeb, AST & Science, and Lynk to expand services to enterprises.

He did not elaborate.

In March, MTN’s South African unit and American LEO satellite provider Lynk Global trialled Africa’s first phone call via satellite, a potential way of providing coverage in underserviced and rural areas.

Reuters

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MTN Group, Africa’s biggest mobile operator, said on Monday it has entered into a strategic partnership with UK video software maker Synamedia to develop a new streaming platform tailored for mobile and fibre subscribers across Africa.

Launched in 1994, MTN Group has diversified from just providing voice calls and data, to being a technology media company that also provides fintech, digital and entertainment services as voice declines.

“We see a unique opportunity to transform video consumption in Africa with high-quality, accessible and relevant content,” said Selorm Adadevoh, Group Chief Commercial Officer at MTN Group.

MTN Group, which has 291 million customers across 16 markets in Africa, is hoping to capitalise on the rapid uptake of smartphones and improving telecommunications infrastructure on the continent, which have both driven demand for video streaming services.

The proposed service will leverage Synamedia’s cloud-based technologies to deliver both linear television and video-on-demand content, the companies said in a joint statement.

The platform will offer diverse monetization models, including subscriptions, ad-supported content and free streaming channels with targeted advertising, they said.

Each market will benefit from a curated content strategy, adapted to local cultures, languages, and viewing habits, they added.

The parties will enter a streaming market where not only MultiChoice’s Showmax has a strong foothold, but also global competitors Netflix, Disney, Amazon Prime and Apple TV.

Reuters

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MTN Group and Airtel Africa have struck a deal to share mobile phone network infrastructure in Uganda and Nigeria, they said on Wednesday, aiming to save on investments while still increasing service coverage.

Mobile operators in Africa are seeing sustained demand for digital and financial services, but building and maintaining networks are expensive, especially for fast 5G connections.

“There are opportunities within regulatory frameworks for sharing resources to drive higher (operational) efficiencies and improve returns,” MTN Group CEO Ralph Mupita said in a statement.

Airtel Africa Chief Executive Officer Sunil Taldar said the agreement would avoid duplication of expensive infrastructure.

Sharing infrastructure allows operators to extend their network coverage more quickly, especially in rural or less densely-populated areas where it might not be economically viable to build separate networks.

Following the conclusion of agreements in Uganda and Nigeria, MTN and Airtel Africa will explore various opportunities in other markets, including Congo-Brazzaville, Rwanda and Zambia, the companies said.

Among the deals under consideration are radio access network sharing, the largest portion of the cost in network deployment and operation; commercial and technical agreements for fibre infrastructure sharing; and, if necessary, the construction of fibre networks, they added.

“This engagement does not preclude the parties from collaborating with other operators in any respective market,” the companies said.

Reuters

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MTN Group suffered a 69% slump in full-year earnings, Africa’s biggest telecom operator reported on Monday, hit by devaluation of the Nigerian naira and operational challenges in Sudan.

South Africa-headquartered MTN said its reported headline earnings per share (HEPS) – one of the main profit measures in the country – fell to 98 cents in the year to December 31, down from from 315 cents in 2023.

Nigeria has suffered chronic dollar shortages that have forced authorities to devalue the naira as part of the government’s measures to stabilise the currency and attract investment.

Coupled with high inflation and interest rates, this has driven up costs and widened MTN Nigeria’s pretax loss by more than 200% to 550.3 billion naira ($355.76 million).

In Sudan, the group’s operational and financial performance was hampered by ongoing armed conflict in the country, Group CEO Ralph Mupita said in a statement.

MTN Group, which has 291 million customers across 16 markets in Africa, said its group service revenue decreased by 15% to 177.8 billion rand ($9.78 billion). In constant currency, group service revenue rose 14%.

It declared a final dividend of 345 cents per share, up from 330 cents.

Reuters

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MTN South Africa (MTNJ.J), opens new tab on Tuesday launched MTN Icon 5G, a 5G-enabled smartphone it plans to sell for 2,499 rand ($138) as part of its commitment to make mobile internet more accessible and switch customers from older 2G and 3G technologies.

While growth in mobile internet penetration has reduced the digital divide among South Africans, a significant gap remains, according to the GSMA industry body, with the main reason being affordability.

MTN Icon 5G provides an affordable entry point for customers seeking to benefit from 5G’s faster data speeds, lower latency, and enhanced user experiences, MTN said in a statement.

The smartphone, which is also available from R219 per month on a 36-month contract, is manufactured by Chinese handset maker ZTE Corp, MTN said in an emailed response to questions.

MTN, South Africa’s second biggest mobile operator, also introduced the phone as a way to accelerate migrating customers from legacy 2G and 3G networks to modern 4G and 5G networks as South Africa starts phasing out the older technologies.

“This is another significant step in our mission to ensure that all South Africans have access to fast, reliable, and affordable mobile communication, regardless of their economic background,” said Thando Gabela, General Manager for Devices at MTN South Africa.

Reuters

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Africa’s biggest mobile operator MTN is exploring partnerships with low-Earth-orbit (LEO) satellite providers to bring internet connection to rural and remote customers in particular, Group CEO Ralph Mupita said on Monday.

Satellite-internet has become an alternative connectivity solution across Africa with the popularity of providers such as Starlink, operated by Elon Musk’s SpaceX.

LEO satellites provide high-speed internet even in areas where terrestrial telecommunications infrastructure such as fibre and mobile broadband is difficult and expensive to deploy.

“To keep customers and businesses connected at all times, we’re going to have to embrace satellite as an additional technology form,” Mupita said in a media call.

He said South Africa-based MTN was carrying out proof of concepts with a number of LEO satellite operators for possible partnerships.

“We are exploring several, and actually some of them we’re happy to be resellers through our enterprise business to some of our customers in specific countries,” Mupita said.

MTN is not alone in seeking out partnership agreements. Smaller rival Cell C is doing the same.

South Africa’s biggest operator Vodacom, majority owned by Britain’s Vodafone, announced a partnership with Amazon’s Project Kuiper LEO satellite last year.

“We’re very aware of the challenges of having to compete as a fixed and wireless operator with LEO satellites over time, so we’re arranging ourselves to be able to sure proof our businesses in our key markets,” Mupita said.

Starlink operates in several African countries but has faced regulatory challenges in others, including South Africa, and resistance from state telecoms companies.

South African regulator ICASA is currently working on the regulatory and licensing framework for satellite-internet providers to provide clear rules for operators.

“LEO operators should be treated the same as terrestrial operators such as ourselves, subjected to the same regulatory requirements whether it’s around data privacy, data transport, localization and access to spectrum,” Mupita said.

“Our ask is that there just be a level playing ground.”

Reuters

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Total owns 45% of the exploration rights to the Brulpadda block, an area of 19,000 km² some 275km south of Mossel Bay.

These are the other shareholders:

25% Qatar Petroleum

20% Canadian Natural Resources

10% Main Street 1549

Nhleko is the only South African director of Main Street, according to company records. The Canadian company Africa Energy holds 49% of Main Street, while Nhleko’s company Arostyle Investments owns 51%. 

This gives his company an effective 5.1% interest in an asset that could yield $1 trillion according to the most optimistic estimates – potentially valuing his stake at more than $50 billion – a cool R685 billion. 

Apart from Nhleko, there is only one other South African business interest in Brulpadda: HCI, which owns e.tv (through its 63% stake in eMedia Holdings) and Tsogo Sun.

Its exposure is, however, indirect, and a bit complicated:

An HCI subsidiary owns 49% of a UK-based company called Impact Oil and Gas. Last year, Impact gave Nhleko’s Arostyle a loan.

“The funding from Impact supported Arostyle’s share of Main Street’s initial, up-coming, exploration commitments including the Brulpadda-1AX well,” an Impact spokesperson said.

If the well proves successful, Impact – which has other African oil assets and has partnered with Total in Namibia and South Africa – will fund further expansion.

The spokesperson didn’t want to give information on how the loan is structured – apart from saying that “the return is commensurate with the risk associated with exploration, therefore Impact hopes to share in the upside”. In a statement, Impact says Arostyle has committed $17.2 million (R237 million) so far to Main Street.

It’s not clear why the 58-year old Nhleko – who famously earned R72 million in a single year as MTN CEO and is one of South Africa’s top dealmakers – would turn to Impact for funding.  

In 2014,  President Cyril Ramaphosa sold most of his business interests to Nhleko’s company Phembani. This created a group with more than R9bn in assets. Phembani holds stakes in Engen, Afric Oil, the coal company Exxaro, and the cement group AfriSam among others. Ramaphosa has no interest in Phembani.

In 2015, Nhleko and Richemont chair Johann Rupert established the $435 million Phembani Remgro Infrastructure Fund. So far, the fund invested in the fibre group Octotel, the internet service provider RSAWeb as well as solar power, rail and agricultural groups.

Nhleko served as MTN CEO while Ramaphosa was the company’s chairperson. Nhleko replaced him as MTN chairman when Ramaphosa stepped down to return to politics.

Ramaphosa also has ties with HCI, but it’s not as harmonious.

In 2005, Ramaphosa had to resign as Johnnic chairperson after HCI took control of the company against his will. Ramaphosa urged Johnnic shareholders to vote against HCI’s “hostile” bid, but he didn’t prevail.

Source: Business Insider

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KAMPALA,

Ugandan police said Tuesday they had deported a French national and a Rwandan employee of the MTN Uganda telecom firm, claiming they were a threat to national security.

Olivier Prentout from France and Annie Bilenge-Tabura from Rwanda had been using their positions to “compromise national security”, police spokeswoman Polly Namaye said in a statement.

“We strongly believe that the deportation of the two foreigners, who were using their employment as tools to achieve their ill motives, has enabled us (to) disrupt their intended plans of compromising our national security,” she said.

MTN’s Uganda branch said in a statement that Mr Prentout, their marketing chief, was arrested at Entebbe airport after returning to Uganda while Ms Tabura, who heads sales and distribution, was detained at their office in the capital Kampala.

“Both Mr Prentout and Mrs Bilenge have been deported from Uganda to their home countries, France and Rwanda respectively,” MTN said in a statement.

“MTN Uganda, together with all its employees, remains fully committed to operating within and respecting the laws of the country,” it added.

MTN BRUSHES

Based in South Africa, MTN is one of the largest telecom operators on the continent.

This incident is not its first brush with Ugandan authorities.

Last July, MTN said armed men claiming to be from Uganda’s Internal Security Organisation “kidnapped” two of its contractors and forced them to open up the company’s main data centre, where they made an unsuccessful attempt to access servers.

MTN Uganda said at the time that it took the “criminal incident” seriously and had reported it to the authorities, while adding it didn’t believe it was under investigation.

Rwanda and Uganda have had strained relations in recent years. The two East African neighbours each accuse the other of espionage.

Uganda has occasionally arrested suspected Rwanda spies, while Rwanda has accused its northern neighbour together with Burundi of supporting rebels opposed to President Paul Kagame.

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