After a series of missteps, MTN, which operates in 22 countries, has left a bitter taste in the mouths of shareholders, customers and business leaders alike. What will incoming CEO Rob Shuter, who starts work in March, have to do to restore the company’s reputation?
An expected loss for this financial year due to a whopping fine in Nigeria. An ongoing investigation in that country into the alleged illegal repatriation of money as well as a planned listing in Lagos. A brewing freedom of expression scandal in Cameroon and an ongoing investigation by the Cameroonian government into unpaid taxes.
The purchase of a major stake in an Iranian internet service provider. Angry black shareholders whose payouts have been delayed. A South African market where it has been shedding subscribers and has faced heavy criticism for its decision to appoint a white CEO to take over from acting CEO and current MTN chairperson, Phuthuma Nhleko.
It seems Rob Shuter, who takes the reins as the MTN Group CEO in mid-March, already has a very full inbox.
Nigerian fine hits hard
In October 2015, MTN’s world was turned upside down with the announcement by the Nigerian Communication Commission (NCC) that it was slapping the mobile giant with a 1.04tr naira fine ($5.2bn at official exchange rates at the time), for failing to meet a deadline to disconnect 5.1m unregistered SIM cards in Nigeria.
This was equivalent to more than two years of MTN’s Nigerian profits, while MTN Nigeria accounts for almost a third of MTN Group’s total revenue.
The magnitude of the fine was “astonishing” and it was clear to see the “hand of political interest” at play, said founder of World Wide Worx, Arthur Goldstuck. In the wake of the fine, MTN CEO Sifiso Dabengwa resigned and Nhleko was appointed to act.
Bu hikaye Finweek English dergisinin 2 March 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 2 March 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
