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East Africa

Mitwa Ng’ambi-led MTN Rwanda posts $19.1 million in profit for 9M 2021

The profit marked an 8.7-percent growth from the figure posted for the same period last year.



MTN Rwanda CEO Mitwa Ng’ambi.

Rwanda’s largest telecom company, MTN Rwandacell (MTN Rwanda), has posted R₣19.4 billion ($19.1 million) in profit in the first nine months of its 2021 fiscal year, which ended in September 2021.

The profit marked an 8.7-percent growth when compared with the profit of R₣17.9 billion ($ 17.52 million) that it posted last year.

The growth in earnings was supported by a boost in voice and data revenue despite a 25-percent increase in operating expenses and a 37.2-percent surge in depreciation and amortization costs.

Figures contained in the report revealed that the group revenue (which includes voice, data and financial services revenue) increased by 23.5 percent from R₣111.3 billion ($109.35 million) in 2020 to R₣137.5 billion ($134.8 million) in 2021.

The growth in overall revenue was underpinned by solid growth in voice, data and financial services revenue, as mobile subscribers and active data users increased by nine percent and 23.8 percent to 6.4 million and 2 million, respectively.

This improvement in subscriber base spurred a 1.7-percent increase in the company’s market share to 62.8 percent. This cements its status in East Africa as the largest telecom services  provider in Rwanda.

MTN Rwanda CEO Mitwa Ng’ambi said that despite the economic slowdown triggered by the COVID-19 pandemic, the company was able to execute its strategy and deliver on its promise of creating shared value for all stakeholders.

“Despite the impact of the pandemic, our financial performance was supported by the resilience of our business model and commercial execution which saw our mobile subscriber base grow by 9-percent, with active data users and mobile money (MoMo) users up by 23.8 percent and 18.7 percent year-on-year, respectively,” she said.

She concluded that the management will deploy the necessary strategies to maintain growth momentum in Q4 2021, as the group will focus to maintain a healthy margin and invest heavily in the capacity and quality of its services.

MTN Rwanda is an operating subsidiary of MTN Group, a telecom behemoth based in South Africa.

Earlier this year, the company listed on the Rwandan Stock Exchange after Rwanda’s Capital Market Authority approved the listing by introducing 1,350,886,600 (1.35 billion) ordinary shares valued at R₣269 ($0.27) per share.

Trading as “MTNR,” MTN Rwanda was valued at $364 million. This gave the local bourse a boost in its market capitalization.

East Africa

Kenyan banking exec Andrew Ndegwa gains $1.5 million in 43 days from investment in NCBA Group

Ndegwa, an executive director of First Chartered Securities Limited, owns 4.3 percent of NCBA Group.



Andrew Ndegwa.

After losing a sizable portion of its market capitalization in the first half of 2022, NCBA Group has seen its share price soar above its opening price at the start of this year.

NCBA Group is a financial services conglomerate based in Kenya.

Due to the recent gains in the company’s share price, Kenyan banking tycoon Andrew Ndegwa has seen the market value of his stake in the conglomerate increase by more than $1.5 million over the past 43 days.

As of press time on Aug. 12, shares in NCBA Group were trading at Ksh26.2 ($0.22), 4.73-percent less than their opening price this morning as wary investors took advantage of the high price to sell off some of their positions in the bank.

Since June 30, shares in the Nairobi-based financial services provider have risen by 11 percent, from Ksh23.6 ($0.198) per share to Ksh26.2 ($0.22) per share, driven by a resurgence in buying interest among market participants.

Ndegwa, an executive director of First Chartered Securities Limited, owns 4.3 percent of NCBA Group. He has seen the market value of his stake rise from Ksh1.67 billion ($14.02 million) on June 30 to Ksh1.86 billion ($15.57 million) due to the recent bullish sentiment on the NSE floor.

As a result, the banking tycoon has gained a total of Ksh184.36 million ($1.54 million) over the past 43 days, solidifying his status once more as one of the wealthiest investors on the NSE.

Meanwhile, James Ndegwa, his brother and the former head of Kenya’s capital markets authority, has seen his 4.23-percent stake in NCBA Group increase by $1.47 million over this same period.

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East Africa

Malagasy tycoon Hassanein Hiridjee says Africa needs to invest in clean energy transition

Hiridjee is one of Madagascar’s wealthiest and most powerful business leaders.



Malagasy tycoon Hassanein Hiridjee.

Malagasy multimillionaire businessman and AXIAN Group CEO Hassanein Hiridjee has stated that Africa must invest in a clean energy transition to bolster the continent’s renewable energy capacity.

“We must double our commitment within Africa to increase investments to shape our own energy destiny in order to meet long-term goals,” Hiridjee said.

Millions of Africans could be lifted out of energy poverty with the right strategy and investment in clean energy transition projects stimulated by collective action from the private and public sectors, he said.

His statement comes after U.S. billionaire Michael Bloomberg pledged $242 million to assist developing countries, including African nations, in transitioning away from non-renewables.

Hiridjee explained that such funding is needed to combat Africa’s continuing energy crisis, in which hundreds of millions lack access to basic electricity.

He added that the lack of access to basic electricity is only worsening as a result of the war in Ukraine and COVID-19, with 25 million more Africans living without electricity than before the pandemic.

Infinity Group, a leading renewable energy company led by Egyptian billionaire Mohamed Mansour, recently partnered with the Africa Finance Corporation to acquire Lekela Power, making Infinity the continent’s largest renewable energy company.

Hiridjee, one of Madagascar’s wealthiest and most powerful business leaders, has also played a formative role in developing commercially viable energy solutions that provide Africans with efficient, long-term access to energy resources.

Earlier this year, Axian Group completed the expansion of the Ambatolampy solar power plant in Madagascar, from 20 to 40 MWp.

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East Africa

Ugandan tycoon Charles Mbire to pocket $1.15-million interim dividend from MTN Uganda

Mbire owns a significant 3.98-percent stake in the Ugandan telecom outfit.



Charles Mbire.

Ugandan multimillionaire businessman Charles Mbire is on track to receive an interim dividend of Ush4.48 billion ($1.155 million) from his stake in MTN Uganda after the telecom group reported a double-digit percent increase in earnings in the first half of 2022.

MTN Uganda is Uganda’s leading telecom service operator.

Mbire, the chairman of MTN Uganda and one of Uganda’s wealthiest businessmen, owns a significant 3.98-percent stake in the Ugandan telecom outfit, which operates as the fourth operating subsidiary of the South African multinational mobile telecom company, MTN Group.

The interim dividend will be paid electronically into his bank account at a later date from the group’s retained earnings of Ush902 billion ($232.4 million) at the end of its 2022 fiscal year. It is his first dividend from the telecom company since its shares were listed more than eight months ago.

The dividend payment follows a significant rise in the group’s earnings in the first half of 2022 despite a 4.9-percent decline in voice revenue, as it looks set to replicate its stellar performance in 2021.

As a result of the company’s strong financial performance, the board of directors approved the payment of an interim dividend of Ush5 ($0.00128) per share for the six months ending June 30, totaling Ush11.95 billion ($28.9 million), which is subject to withholding taxes.

According to data retrieved from the company’s earnings report for the first six months of 2022, its profit increased by 48.1 percent to Ush193.6 billion ($50.2 million) in the first half of 2022, compared to Ush130.7 billion ($33.7 million) in the first half of 2021.

The double-digit increase in profit can be attributed to a 10-percent surge in the company’s service revenue, which was driven by a significant increase in data and fintech revenue, which were more than sufficient to offset the 4.9-percent decline in voice revenue.

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