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While several African businessmen have witnessed a substantial surge in their fortunes this year, prominent entrepreneur Charles Mbire, recognized as the wealthiest investor on the Uganda Stock Exchange, finds himself among those grappling with investment losses.
According to data tracked by Billionaire Africa, the market value of Mbire’s 3.99-percent stake in MTN Uganda has declined by Ush8.92 billion ($2.4 million) since the start of the year, falling from Ush160.54 billion ($43.89 million) on Jan. 1 to Ush151.62 billion ($41.45 million) at the time of writing.
The $2.4-million downturn is a result of the decline in the share price of MTN Uganda on the Uganda Stock Exchange. This decline corresponds with the prevailing bearish sentiment on the Ugandan bourse, directly affecting the shares of the leading telecommunications provider.
MTN Uganda, a subsidiary of the MTN Group, has firmly established itself as the leading telecom operator in Uganda, serving an impressive 97 percent of the population. With a subscriber base of more than 17 million, the company has solidified its presence domestically and extended its reach globally.
Even as MTN Uganda’s shares slumped by 5.56 percent from Ush180 ($0.04921) to Ush170 ($0.0465) since the start of the year, resulting in losses for shareholders including Charles Mbire, the telecom services provider retained its position as the most valuable company on the Uganda Stock Exchange with a market capitalization of Ush3.8 trillion ($1.04 billion).
In its recently published financial report, MTN Uganda posted a 17.8-percent surge in profits in the first half of 2023, amassing Ush228.04 billion ($63.15 million). This reinforces the company’s stellar performance throughout 2022, further cementing its standing as one of MTN Group’s most lucrative subsidiaries.
The surge in the group’s profit stems from a substantial upswing in revenue, which increased by 15.8 percent, from Ush1.09 trillion ($302 million) to Ush1.26 trillion ($349 million). The drivers underpinning this revenue growth include a 22.1-percent bump in data revenue, an 18.6-percent surge in fintech revenue, and a 9.4-percent increase in voice revenue.
