MTN Uganda on Tuesday this week announced their intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE) following the requisite approval by the Capital Markets Authority and USE for MTN Group to sell 20% of its shareholding in MTN Uganda to the public. MTN Group now owns 96% shares in its subsidiary, MTN Uganda.
President Museveni on Wednesday while meeting with the MTN Group delegation led by MTN Board Chairman Mcebisi Hubert Jonas and the Group’s President CEO Ralph Mupita at State House in Entebbe, described the strategy as very important — who said it allows Ugandans to be partners in all the activities of the company.
“Localisation is very important. It removes nationalism in the business where all people become partners,” he said.
While in the meeting that was also attended by Yolanda Cuba, Wim Vanhelleputte, Charles Mbire, Kabyanga Godfrey, and Irene Kaggwa Sewankambo — President Museveni congratulated the leadership of MTN for the strategy including that of the expansion of services to the rural areas as well as in business promotion.
Mcebisi informed President Museveni that the telco has made tremendous progress in the localization strategy that will see Ugandans acquire shares as the company aims at ensuring that MTN is owned by the people of Uganda. “The localization process has started to ensure that MTN is owned by Ugandans. The overall new strategy is that as a company, it is owned by Africans,” he said.
Mcebisi further announced that key positions are currently manned by Ugandans including that of Chief Executive Officer of MTN South Sudan — which is taken up by Gordian Kyomukama who was appointed by the Group on January 21st, 2020.
Mcebisi also told the President that MTN is committed to staying in Uganda and is set to invest USD$300 million (roughly UGX1.071 billion) in the next 3 years. He concluded with a promise to continue contributing Covid-19 vaccines as well as roll out services to the people in rural areas.
I met leaders of the @MTNGroup led by their chairman Mcebisi Jonas. The meeting comes just days after @mtnug arrived at an internal decision to float their shares. Now, these people have also told me of their plan to invest US$300m in network expansion in the next 3 years! pic.twitter.com/sgc0b3fUSA
— Yoweri K Museveni (@KagutaMuseveni) October 6, 2021
MTN’s listing on Uganda Securities Exchange is in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries. It is also in line with the provisions of MTN Uganda’s NTO license, which requires its listing by end of June 2022.