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MTN Rwanda Lists on Kigali Stock Market

May 7, 2021

Ralph Mupita, the MTN Group President and Chief Executive

The MTN subsidiary in Rwanda has listed on the Rwanda stock exchange. With this development, shareholders of Crystal Telecom became direct shareholders of MTN Rwanda with the listing of its shares on the Rwanda Stock Exchange, Kigali. A total of 1,350,886,600 ordinary shares were registered with the RSE at an initial listing price of Rwf269 per ordinary share. At the time of suspension of trading of CTL shares late last month, the price per share stood at Rwf190.

The total market capitalisation of MTN Rwanda (MTN Rwandacell Plc) is Rwf 363,388,495,400, making it one of the most valuable firms in the country.

With the listing, 20 percent of MTN Rwanda’s shares which were previously held by CTL are now directly held by the public, a total of 270,177,320 shares.

The rest of the shares will be held by MTN REL (Mauritius) Limited, 337,721,650 shares (25 per cent) and MTN International (Mauritius) Limited 742,987,630 (55 per cent). This means that the telco received a waiver from Capital Markets Authority and Rwanda Stock Exchange on the 25 per cent public holding requirement for listed companies.

Explaining why only 20 per cent will be available for the public, Ralph Mupita, the MTN Group President and Chief Executive said that it was among other things informed by previous experience listing in other markets as well as anticipated demand.

Mupita said that from their experience in previous listings in Ghana and Nigeria, the decision about the size of stake to avail for public trading was informed by demand patterns, need for capital and regulator engagement. The firm did not need to raise capital but rather enable CTL exit was among factors considered.

“When we came to Rwanda, which is our third listing, the company did not mean to raise additional capital but rather restructure CTL to allow direct ownership. In time to come, if there is sufficient demand or a requirement by the regulator, we will be open to go beyond 20 per cent,” he said.

“In Ghana, we went in with a desire to sell up to 30 per cent position from our 98 per cent position but when we did the IPO, we realized that there was only demand of about 12 percent. Out of that, close to 8 per cent was by international investors,” he added.

Celestin Rwabukumba the Chief Executive of the Rwanda Stock Exchange said that they explored multiple options before agreeing on the 20 per cent.

He said that while the local market has requirements for 25 per cent to be floated during listing, the boards of CMA and RSE have discretions to waivers depending on the need presented.

On having more than 20 per cent available for public trading, Rwabukumba noted that it would be based on capital market requirement, market demand among others.

“While I would want more (available for trading), I have to face realities and accommodate the needs of all parties, their (MTN ) interests have to come into consideration so that the shareholders and market benefit,” he said.

Going forward, MTN Rwanda Chief Executive Mitwa Ng’ambi said that they are keen on delivering value to shareholders and continued investments by further establishing our presence, expanding connectivity, driving digital inclusion among others.

Minister of Finance and Economic Planning Uzziel Ndagijimana said that listing is proof of confidence in the economy, future of capital markets and would serve to improve the local ecosystem.

He noted that the Rwandan economy is on a recovery path and is expected to grow by 5.1 per cent in 2021 and 7 per cent in 2022.

For dividend payout, MTN Rwandacell Plc will target a minimum dividend pay-out ratio of 50 percent of its distributable net income in the medium term, other than in 2021 where a pay-out ratio of at least 30 per cent will be targeted to take account of the renewal of the telco’s license.

MTN Rwanda registered an after-tax profit of Rwf20.2Bn in 2020 compared to Rwf6.81B in 2019, a growth of close to 200 per cent. The telco is projecting profit after tax of about Rwf23.7B in 2021.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

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.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

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MTN Receives Mobile Money Certification in Rwanda

October 22, 2020

Africa’s biggest mobile telecoms network, MTN has become the first provider in Rwanda to gain the GSMA Mobile Money Certification. The certification scheme, which was launched in April 2018, is a global initiative that relies on an independent assessment of a mobile money provider’s ability to deliver secure and reliable services, to protect the rights of consumers and to combat money laundering and the financing of terrorism.

In order to become certified, Mobile Money providers are assessed against numerous criteria, such as safeguarding customer funds against risk of loss, combating money laundering, terrorist financing and fraud, managing staff, agents, and third parties correctly, communicating fees and information transparently to customers, effectively addressing customer service requests and complaints and protecting customers’ personal data, amongst others.

John Giusti, Chief Regulatory Officer, GSMA said that The GSMA’s Mobile Money Certification now reaches over 210 million customers through certified providers. MTN’s CEO, Mitwa Ng’ambi said that they seek to continuously empower customers to make more informed choices about their financial services.

“The GSMA Mobile Money Certification is a global industry initiative to bring safer, more transparent, and more resilient financial services to millions of Mobile Money users around the world. MTN Rwanda is extremely proud to be a certified provider as we continue to empower our customers to make more informed choices about their financial services,” she said.

For the past 10 years, MTN has made significant technological and financial investments to facilitate the development of an inclusive digital economy through Mobile Money. This is in line with Rwanda’s 2020 Vision and the Smart Rwanda Master Plan to become a cashless economy.

Chantal Kagame MTN’s Chief Business and Corporate Affairs Officer said that it was a huge milestone and will ensure a higher quality of service and give comfort that their services are high quality.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry