MTN Uganda Transitions with Tech Offerings
Sylvia Mulinge, CEO of MTN Uganda, discussed with the World Business Journal the company’s 2025 vision, mobile money offerings, various collaborations, and substantial investments in 5G infrastructure and technology.”
How has the successful listing of MTN on the Uganda Securities Exchange (USE) influenced its profitability and corporate profile?
MTN Uganda’s listing on the USE marked a pivotal moment in our journey, catapulting us to new heights. The impact was profound, more than doubling the local market capitalisation from Shs3.8trn ($999m) to a remarkable Shs8.2trn ($2.2bn). This transformative milestone propelled us into the league of Africa’s most valuable companies, a recognition of our growing influence and significance on the continent. We’re now viewed as a local company and partner in the growth and development of Uganda’s economy and, above all, more transparent and accountable to our stakeholders. As part of our shared value, the company has since paid a total of five dividend payouts valued at Shs586.7bn ($154.2bn) to over 20,000 shareholders since its listing.
How does the implementation of Ambition 2025, MTN’s 2025 vision, align with Uganda’s Digital Transformation Roadmap?
Ambition 2025 is a commitment to spearheading digital solutions that drive progress across Uganda. Our focus rests on five key growth platforms: financial technology (fintech) solutions, digital services, enterprise services, Network as a Service (NaaS) and the application programming interface (API) marketplace.
Remarkable progress has already marked our journey. Take, for instance, the transformation of fintech through MTN Mobile Money (MoMo), a cornerstone of financial inclusion since its launch in 2009. With over 11m customers, MTN MoMo has become a catalyst for facilitating payments for businesses, significantly boosting the adoption of e-commerce. The growth of MoMo merchants, tripling to over 267,000 in the past year, attests to its resounding impact.
In partnership with NCBA Bank Uganda, MTN MoMo has extended its services to provide savings and credit facilities, promoting financial inclusion. Furthermore, our collaboration with XENO Investment Management empowers customers to invest in productive ventures, including government Treasury bills and bonds. MTN MoMo also offers opportunities to save for unforeseen medical expenses through a partnership with clinicPesa.
In the realm of enterprise services, MTN introduces the Fast-Moving Consumer Goods (FMCG) Digital Suite, a pioneering solution transforming the supply chain landscape. By automating product and service distribution and enabling payments via MoMo, this platform eliminates the need for cash transactions. This not only enhances efficiency but also addresses security concerns and streamlines record-keeping across the supply chain. We are proud to have onboarded Uganda Breweries onto this platform, and we eagerly anticipate more businesses joining this innovative journey.
Our commitment extends to expanding our network to ensure universal access to our services. Since 2021, we have erected over 1871 new masts, significantly enhancing our network coverage. Notably, our 2G population coverage has increased from 98% during the first half of 2022 to an impressive 98.4% in 2023. The evolution doesn’t stop there, as our 3G and 4G coverage has also seen substantial enhancements. Our 3G coverage has increased from 90.9% to 92.4% and our 4G coverage, from 67.7% to 83.4%. We are also making substantial investments in our 5G infrastructure, products, services and technology, while expanding our fibre-optic network to over 9500 km to meet our customer needs.
Regarding the API marketplace, MTN recognises the evolving needs of consumers and is now providing third parties with access to our proprietary software platform. This innovative service empowers businesses to create solutions that accelerate digital transformation and innovation. With the launch of the API service, MTN Uganda positions itself as a digital transformation enabler and a valuable partner for businesses in both local and international markets.
In this age of rapidly advancing technology, we have moved beyond our telecoms roots and transitioned into a technology company, delivering cutting-edge solutions such as cloud computing, the Internet of Things, AI, Unified Communications and Security as a Service.
This aligns well with the government’s Digital Transformation Roadmap 2023/24-2027/28 that is expected to revolutionize Uganda’s tech landscape. The roadmap, launched in August 2023, is anchored on Digital Uganda Vision 2040 and represents a bold vision for our nation’s future that technology is a catalyst for sustainable development, economic growth and improved livelihoods for all Ugandans.
How can MTN help shape the future of Uganda’s telecoms sector?
Since our establishment 25 years ago, we have played a pivotal role in making mobile phone ownership accessible to everyone. From only 40,000 mobile phone subscribers in all of Uganda in 1996 to more than 34m mobile phone subscribers in 2023, MTN has also commanded more than 50% of the market share. This achievement was realized through the elimination of barriers, such as monthly service fees and a substantial cost reduction in making calls.
With a stable and growing economy, a relatively young population with more than 70% under 30 years and relatively low internet penetration rates, the future is bright for the telecoms sector moving forwards.
