MTN Uganda to increase local shareholding to 20 percent
Wednesday March 13 2019
MTN Group CEO Rob Shuter (left) with President Museveni on the sidelines of the World Economic Forum in Davos, Switzerland on January 23, 2019. PPU PHOTO
MTN Group's CEO Rob Shuter has confirmed that the telecom giant plans to increase local shareholding to almost 20% in its Uganda unit.
Speaking to NTV Uganda at the Africa Now conference in Munyonyo, Mr Shuter was non-committal on how they will increase local shareholding, but the Uganda government has always favoured that option of the company listing its shares on the Uganda Securities exchange.
Local shareholding in the telecom stands at 4%, and rising it to 20% will bring local ownership up by 16%.
President Yoweri Museveni in January this year, said MTN Uganda needs to sell shares on the local stock exchange to facilitate domestic ownership of the company and ensure more of the money it earns stays in the country.
A unit of South Africa’s MTN Group, the company is the East African country’s largest telecommunications firm, controlling a subscriber base of more than 10 million.
However, relations between MTN Uganda and authorities have become strained after the country deported its executives after accusations they were compromising national security.
Museveni made the comments while meeting MTN Group’s President and CEO Rob Shuter on the sidelines of the World Economic Forum in Davos.
“It is important that you float shares on the local stock exchange to allow for local ownership,” Museveni was quoted as telling Shuter, according to a statement.