Sylvia Mulinge reiterates MTN Uganda’s commitment to localization and creating shared value in Uganda

The Chief Executive Officer of MTN Uganda, Sylvia Mulinge has reiterated the company's commitment to localization and creating shared value within the Ugandan community.

Speaking during the release of MTN Uganda's financial results for 2023, Mulinge noted the importance of broadening local participation and deepening the Uganda capital markets

As part of MTN Uganda’s proactive efforts to comply with national regulatory requirements, Mulinge announced plans to sell an additional 7% of MTN Uganda shares to the public within the current year.

This decision, she acknowledged aligns with the company's goal to list at least 20% of its shares on the Uganda Securities Exchange, demonstrating MTN's dedication to meeting regulatory standards and fostering local ownership.

“Over the course of 2024, we will explore a further sell-down of 7% shareholding to the public to broaden Ugandan shareholding and provide an opportunity to investors to own a stake in the company,” she said.

By offering more shares to the public, MTN Uganda aims to provide opportunities for local investors to participate in the company's growth and success. This initiative reflects MTN's broader strategy of prioritizing localization and empowering communities across Uganda.

MTN Uganda reported a 16.1% increase in service revenue, reaching UShs 2.63 trillion for the year ending December 2023, with after-tax profits surging 21.4% to UShs 493 billion. Data revenue experienced a 21.6% climb to UShs 621.9 billion.

The period also saw a 22.4% rise in active data subscribers, reaching 8.2 million, contributing to a 16.3% increase in EBITDA, which stood at UShs 1.37 trillion. Subscriber numbers overall ascended by 13.3%, totaling 19.5 million. Capital expenditure, excluding certain assets, increased by 5.5% to UShs 353.5 billion. The telecom leader proposed a UShs 403.0 billion dividend to its shareholders.

Highlighting the year’s milestones, Mulinge said the company is committed to expanding and upgrading its network infrastructure.

“We’ve deployed an additional 350 sites with a focus on 4G LTE, enhancing coverage by 6.7 percentage points to 85.1%, while our 3G and 2G networks now cover 92.6% and 98.6% respectively,” she noted. “Our pioneering rollout of 5G, with 37 sites, and recognition for the fastest internet speeds in Uganda by Ookla, underscore our commitment to excellence and customer satisfaction.”

Mulinge also spotlighted the success of the MTN Kabode programme, which led to a 26.8% growth in smartphone users and a 39.1% smartphone penetration rate on the MTN network.

She said the launch of e-SIM technology in the fourth quarter marked another innovative milestone, offering customers seamless carrier switching and plan management capabilities.

By:  Nana Appiah Acquaye