MTN Uganda is the largest telecom company in Uganda, with 11.2 million subscribers, accounting for 55 percent market share, as of 30 June 2017. By 31 December 2019, its customer base had increased to 12.6 million customers.
Location
The headquarters of MTN Uganda are located at 69-71 Jinja Road, in the Kampala Central Division, one of the administrative units of the city of Kampala, the capital and largest city of Uganda. The coordinates of the company headquarters are 0°19'10.0"N, 32°35'53.0"E. In 2016, The Independent reported that MTN Uganda, had plans to construct a new skyscraper between Jinja Road and Old Port Bell Road, where British American Tobacco used to maintain offices, which would serve as the headquarters for the company.
Overview
MTN Uganda is a subsidiary of MTN Group, a multinational telecommunications group connecting approximately 232 million people in 22 countries across Africa and the Middle East. In 2009, MTN Uganda introduced its mobile telephone-based banking product known as Mobile Money. As of March 2015, MTN controlled 80 percent of the mobile money market in the country. In November 2015, MTN Uganda switched off 3.7 million of its 11.5 million customers to comply with the Uganda Communications Commission's new SIM card registration requirements. In May 2016, MTN Uganda borrowed US$114 million to expand its network and build a new headquarters building on Jinja Road in Kampala. Funding was in the form of a syndicated loan by a consortium of four Ugandan banks, namely Stanbic Bank Uganda, Standard Chartered Uganda, Citibank Uganda, and Barclays Bank of Uganda. In August 2016, MTN Uganda in partnership with Commercial Bank of Africa introduced a new product that allows customers to save money and access microloan products, using their cell phone. The product, called MoKash is available on personal accounts and on accounts for small and medium-sized enterprises. In August 2018, MTN Uganda launched a joint Tidal–MTN music streaming service. The Tidal platform, co-owned by American mogul Jay-Z, offers streaming audio and video for a daily fee of USh1000. Subscribers receive music, videos and exclusive content. Music from the majority of Uganda's leading artistes is available. At that time, the service was available only in Uganda and South Africa, on the African continent.
Initial public offering
In 2018 The EastAfrican newspaper reported that MTN Uganda planned to list the shares of stock of the company on the Uganda Securities Exchange. That willingness to list, on the part of MTN Uganda, was again reported in March 2019. In March 2020 MTN Uganda agreed to pay US$100 million for a 14 year operating licence and to list 20 percent shareholding on the USE, no later than the second quarter of 2022. The shares sold on the USE will be restricted to nationals of the countries of the East African Community; namely Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.
Governance
As of March 2019, the Acting Chief Executive Officer of the company is Gordian Kyomukama, previously the Chief Technology Officer In June 2019, Wim Vanhelleputte re-assumed his position as CEO, after he returned to Uganda, following negotiations between the Ugandan government and MTN International.
Controversy
Wim Vanhelleputte was the chief executive officer. He was suddenly deported from Uganda to his native Belgium on allegations of compromising Uganda's national security. This followed the deportation of three other MTN Uganda executives in the month of July, including the General Manager-Mobile Financial Services, General Manager-Sales and Distribution, and Chief Marketing Officer. All were accused of "compromising Uganda's national security. The former CEO has since sued the government of Uganda in Uganda's High Court. In May 2019, following negotiations between president Yoweri Museveni and MTN International, Wim Vanhelleputte was allowed to return to Uganda and resume his duties as CEO of MTN Uganda.
Licensing
In October 2018, the company's initial 20-year operating license expired. Due to prolonged negotiations between MTN and the Ugandan government, the company has since been operating on temporary short-term licenses. In March 2020 MTN Uganda agreed to pay US$100 million for a 14-year operating license. The telecom also agreed to list its shares on the USE and float at least 20 percent shareholding, in an IPO. In July 2020, MTN Uganda received an operators licence for 12 years, starting on 1 July 2020. Under the terms of the new licence, MTN Uganda shall list a portion of their shareholding, on the Uganda Securities Exchange within 24 months of obtaining the licence. The licence cost US$100 million, which was paid in full in one lump sum.
Financials
In the 12 months ended 31 December 2019, MTN Uganda's gross revenue amounted to USh1.5 trillion.
