MTN Uganda reports strong first quarter performance amid regulatory changes
Image: REUTERS/Esa Alexander/File Photo
MTN Uganda navigated changes in the regulatory environment in the first quarter to end-March and it remains on track to meet medium-term guidance, the CEO Sylvia Mulinge said Wednesday.
The business headwinds were cushioned by supportive macroeconomic conditions, a stronger shilling that appreciated 5.7% against the US dollar, and stable headline inflation which averaged 3.6%, only slightly higher than the 3.2% average in the first quarter of 2024, and marginally higher than the 3.1% of the fourth quarter of 2024.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 13.7% year-on-year supported by a resilient revenue performance and moderate 12.2% cost growth. MTN contributed over 13% of MTN Group's EBITDA in 2024. Profit after tax was up by 20.6% to Ush 180.9 billion.
'Despite the regulatory MTR (mobile termination rate) changes, we are pleased with the solid strategic execution that supported growth in other areas of our business, while ensuring margin resilience and value preservation in our operation,' Mulinge said.
A focus on customer centricity enabled the subscriber base to grow to 22.8 million in the quarter. Data and fintech subscribers increased by 19.4% and 9.8% respectively. Service revenue grew by 13.5%, with stronger contributions recorded from data and fintech portfolios.
In the connectivity business, an interim industry-wide directive from last year relating to the reduction in MTR from Ush 45 to Ush 26, impacted voice outgoing revenues in the quarter.
'To ensure resilience of our portfolio, we intensified our customer value management (CVM) and improved our bundle offering and service proposition to our customers,' said Mulinge.
On the data front, smartphone penetration was invested in by enhancing the affordability of devices through the Pay Mpola Mpola program and device purchase subsidies through partners. This helped to increase the number of smartphones in use by 9.8% on the network.
Data revenue accelerated by 32.5%, anchored by a 19.4% growth in active daily users to 10.2 million, indicating 1.7 million in net additions year-on-year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald
2 days ago
- The Herald
SA will seek new markets for minerals if US imposes high tariffs: Mantashe
South Africa will need to seek out alternative markets for its critical minerals exports if the US hits the country with steep tariffs, said mineral and petroleum resources minister Gwede Mantashe on Tuesday. South Africa is by far the world's leading producer of platinum group metals (PGMs), which are used in car catalytic converters and are among critical minerals subject to a US investigation that could result in new import levies. Washington launched that probe in part to pressure Beijing. China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey and has been curtailing exports. 'If the US imposes high tariffs, we must look for alternative markets,' said Mantashe on the sidelines of a G20 meeting on critical minerals. South African exports of mineral products and precious metals to the US were valued at R65.3bn ($3.64bn) last year. PGMs, largely produced by miners Valterra Platinum and Impala Platinum, accounted for 76.3% of that total. Other South African exports to the US — its second-biggest bilateral trading partner after China — include gold, diamonds, iron and manganese ores, and coal. 'We should never be bullied for our own resources. If people want to trade with us, it must be on terms that are mutually beneficial,' Mantashe said. As President Donald Trump has sought to leverage tariff threats to reshape global trade, South Africa has had a fraught relationship with his administration, which has attacked its domestic race policy and its genocide case against Israel. South Africa's exports to the US are facing the prospect of a 30% baseline tariff from August 1, though PGMs are currently excluded from those levies. Pretoria is awaiting a response from Washington to a counterproposal it submitted last month in hopes of avoiding the 30% rate, South African officials said on Monday. Reuters
TimesLIVE
2 days ago
- TimesLIVE
Uganda to debut 25-year bond as it seeks to extend maturity of its debt
By Uganda's government will sell a 25-year bond for the first time next week, its longest-dated debt instrument yet, as it seeks to extend the maturity of its debt portfolio and limit cash flow pressures, a senior central bank official said on Monday. Currently the lengthiest government bond on sale has a maturity of 20 years. "Borrowing long-term has an advantage that the cash pressure is reduced but also the costs tend to be lower compared to the short-term," Jimmy Apaa, director for financial markets at the East African country's central bank, told Reuters. "When government borrows short-term then it will experience cash flow pressure," Apaa said, adding that the first sale of the 25-year bond would be on August 6. Uganda is following in the footsteps of neighbouring Kenya, which has also sought to lengthen the maturity of its debt to manage financing pressures. Reuters
The Star
2 days ago
- The Star
US tariffs will test South Africa's economic resilience
Nyaniso Qwesha | Published 5 hours ago On August 1, 2025, the United States will impose a 30% tariff on select South African exports, a move the Trump administration frames as a corrective to "trade imbalances" but which South Africa decries as a unilateral overreach. President Cyril Ramaphosa has rejected the US justification, noting that 77% of U.S. goods enter South Africa duty-free, with an average tariff of just 7.6%. Yet, the policy threatens to derail South Africa's fragile economic recovery, destabilise global supply chains, and escalate protectionist tensions worldwide. This article examines the tariff's sectoral impacts, systemic risks to multilateral trade, and strategic responses to mitigate the fallout. South Africa's automotive sector, a beneficiary of the African Growth and Opportunity Act (AGOA), faces existential risk. Reuters reported that the US absorbed 6.5% of South Africa's vehicle exports (worth $1.8 billion in 2024) and is a critical market for manufacturers like BMW and Ford. The 30% tariff could force plant closures and mass layoffs, eroding a sector contributing 5.2% to GDP. Citrus: The U.S. accounts for 5–6% of South Africa's citrus exports ($100 million annually), supporting 35 000 jobs. Tariffs may cede market share to Chile and Peru. Wine: Producers are scrambling to redirect stock or absorb price shocks, but the U.S. market's premium margins are irreplaceable. Macadamia Nuts and Grapes: High-value perishables face logistical hurdles in pivoting to new markets swiftly. The textile sector may lose competitiveness in the U.S., while aluminium exports face a $534.5 million risk, with 24.6% going to the U.S. Furthermore, the South African Reserve Bank warns of 0.3% GDP contraction and 100,000 job losses. Fiscal strain from reduced export revenues and a weaker rand. The tariffs will disrupt global logistics: Freight bottlenecks: A pre-tariff rush to ship goods to the U.S. has already caused 6–10-week delays on routes like China and South Africa. Cost inflation: U.S. consumers will pay more for South African goods, while businesses face redundant inventory and working capital crunches. BRICS Retaliation: The U.S. has threatened an additional 10% tariff on BRICS-aligned nations, politicising trade. WTO Erosion: Unilateral tariffs bypass dispute mechanisms, undermining multilateralism. South Africa may expand its exports by increasing trade with markets in the EU and Asia. AfCFTA: Boosting intra-African trade as a buffer. The trade deal reached today (27 July 2025) between the United States and the European Union will ease tariff barriers and improve market access between the two economies. For South Africa, this development could have significant ramifications. First, EU exporters may displace South African goods in U.S. markets, particularly in competitive sectors like wine, citrus, and manufactured components. Second, the EU may divert more of its exports to the U.S., limiting the space for South African exports to expand into Europe. Unless offset by diplomatic interventions and aggressive trade diversification, this deal risks marginalising South Africa in both the U.S. and EU markets simultaneously. To navigate the crisis, South Africa must leverage trade finance tools: Export Credit Facilities: Bridge cash flow gaps for exporters facing margin compression. Risk Mitigation: Insurance products to hedge against payment delays and demand shocks. Market Diversification: Enter new markets (e.g., EU, ASEAN). Local Substitution: Support domestic production to replace costly U.S. imports. Conclusion: The U.S. tariffs are a stress test for South Africa's economic resilience. While the short-term pain is inevitable, strategic diplomacy, trade finance innovation, and market diversification could transform this threat into an opportunity for long-term resilience. The world will watch whether South Africa and the global trading system can adapt without fracturing further. About the Author : Nyaniso Qwesha, MBA, is a trade finance consultant with expertise in global commerce and risk management. He advises clients on trade policy, market access, and financial solutions in emerging economies.
