Mitwa Ng’ambi - Afrikan Heroes

MTN Rwanda Gets Set To Launch A Fintech Subsidiary

February 17, 2021

Mobile operator MTN Rwanda has great ambitions for the mobile and online financial services market in Rwanda. The telecoms company wants to create a subsidiary specifically dedicated to this business segment for this purpose, in which it sees many business opportunities. The new company will attempt to be more agile in the face of fintech trends, hence its autonomous structure.

According to Mitwa Ng’ambi, the CEO of MTN Rwanda, mobile money, which was initially created as a department within MTN Rwanda, is no longer sufficient on its own to meet the needs of consumers, which have diversified over the years due to changes in consumption habits and the appearance of new technologies.

“Where we are today, we see the future of digital finance, fintech, so much bigger than what we are today,” she said.

Mitwa Ng’ambi said discussions have already been initiated with the Central Bank of Rwanda to establish the requirements and characteristics of this new venture. The boss of MTN Rwanda stressed that the deadlines for the creation and constitution of the new company have not yet been determined. With its Fintech subsidiary, MTN Rwanda could develop new products adapted to new uses.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
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MTN Rwanda to list on Rwandan Stock Exchange

December 24, 2020

Rwanda’s leading telecoms firm and one of the country’s most profitable companies have decided to take it a step further by listing on the Rwandan Stock Exchange. This development follows the company’s recorded profit of about Rwf6.8 billion in profit after tax in 2019 and total revenue of about Rwf125 billion. In 2018, the firm had a profit of Rwf7.7bn. By listing on the Stock Exchange, the continental firm will allow Rwandans to invest and partake in its returns. Listing by introduction is often preferred by firms already in another exchange. This occurs when a company lists its existing shares on an exchange. Given that said company is listing shares that had already been fully paid for, the aim of listing by introduction is not to raise capital immediately, but could serve the purpose later. This will bring the total number of firms on the Rwanda Stock Exchange to 11.

MTN Rwanda has two main shareholders, MTN Group Limited and Crystal Telecom Limited which holds 20 per cent shares in the firm. The development will see the 20 per cent stake held by Crystal Telecom held directly by the public. While 100 per cent shares of MTN Rwanda will be listed on the stock exchange, the 20 per cent stake held by Crystal Telecom will be available for trading by the public. MTN group will hold the 80 per cent shares. Crystal Telecom is yet to provide details on what the development means for holders of their shares.

Read also:How MTN Poaches Telkom’s CFO

The CEO of MTN Rwanda Mitwa Ng’ambi said that the listing is proof of their commitment to investing locally. “The listing reaffirms our commitment to Rwanda. This is a transformative event in the MTN story, and one that we are certain we could not have reached without the support of our stakeholders, partners and customers,” said Ng’ambi.

The listing is expected to broaden public ownership over time, supporting sustainable growth for national development. MTN Group President and Chief Executive Officer Ralph Mupita said that the development is a step towards increasing local participation in the company, and building the capital markets in Rwanda.

The listing is subject to applicable regulatory and governance approvals as well as conducive market conditions. The firm is projecting revenue growth in 2020 of about 12 per cent buoyed by increased Mobile Money and data usage. Listing on the stock exchange means that the firms can easily raise capital needed for expansion.

Rwanda Stock Exchange in 2020 gained two additional players to reach the minimum 10 players requirement for consideration under the World Bank Doing Business Report’s protection of minority investors indicator. The latest entrants were; cross listing of RH Bophelo Limited as well Cimerwa’s listing by introduction.