In the recent MTN public hearing held at the Uganda Communications Commission offices in Bugolobi, a lot was revealed about Uganda’s biggest telecom but one thing that kept making rounds was the question of localization, which was the public calling for big yello to give back to Ugandans by floating its shares on the Uganda Securities Exchange (USE).
The issue of listing on the Uganda Stock Exchange (USE) continues to emerge at the #MtnPublicHearing & Nsamba Charles from @CmaUganda points out that @mtnug should consider listing as “giving back to Ugandans”. pic.twitter.com/RH9IEVhEnj
— Mark Keith Muhumuza (@mumakeith) March 26, 2018
99% of MTN workforce is Ugandan
Already, MTN Uganda employs about 1,200 Ugandans and claims that over 99% if it’s workforce is Ugandan. However when it comes to shareholding in the company, just 5% of the company is owned by the local investco company while the remaining 95% is foreign owned. Given MTN Uganda is under the umbrella of the Johannesburg listed MTN Group, we can at least attest that the remaining shareholding falls in the hands of investors in the JSE listed unit.
Over UGX 94 Billion paid to @UCC_Official as spectrum fees.
Direct employment comes in at over 1500 Ugandans, 150K indirectly with over UGX 20 Billion paid in commissions monthly. #MtnPublicHearing
— Remmegious Ssewankambo (@S_Remmie) March 26, 2018
This was further re-echoed by the current CEO, Wim Vanhelleputte who addressed this by saying that it wasn’t a decision his management could give an outright answer to, since he’s answerable to a board but he will front the public’s interest once they convene.
On localization the @mtnug CEO @wimMTNUG notes that 5% of the company is owned by a local company, Invesco. Adds that further localization is something on the MTN Uganda Agenda but may not be through listing the USE. #MTNPublicHearing pic.twitter.com/Pr6dLsqvDh
— Mark Keith Muhumuza (@mumakeith) March 26, 2018
He so expounded on other possible ways of getting a piece of MTN for those interested in local shareholding as the USE listing might not be possible. He also cautioned that were they to list, the opportunity to invest isn’t only limited to local Ugandans but even investors outside Uganda who can also buy up shares in the telecom.
It should be noted that the MTN group has some of its units listed in various countries where it operates, some as a result of local regulations. Some of the listed units include Nigeria, Ghana and Rwanda.
What are our neighbors doing?
Just a stone’s throw away in Tanzania, the government put up requirements for all telecoms to list at least 25% of their shares on the local bourse and the most recent one being of Vodacom Tanzania, that bouyanced with a record performance at the Dar Stock Exchange with its shares up by 6% on the initial public offering.
Aside from both offshore and local investors, major investors include pension funds like our NSSF, insurance companies among others that normally buy stock in listed companies so it would make sense for Ugandans to collectively invest using these third-parties just in case chance strikes and MTN Uganda lists its shares, in order to fend off competition from offshore investors with a large capital might.
