Uganda has told MTN Group that it has to list some of its shares on the Ugandan Stock Exchange (USE) as a precondition for renewal of its operating licence which expires in October.
Godfrey Mutabazi, who heads Uganda Communications Commission (UCC) told Reuters that having operated its business profitably in Uganda for 20 years, it was only fair for MTN to allow Ugandans own part of it.
“We are evaluating the conditions of (licence) renewal and that’s [listing shares on USE]one of the points we are discussing,” he told Reuters. “They have not shown any resentment to that proposal at all,” Mutabazi added.
“MTN is an investor here and they have been here for 20 years[…], I would argue that they have been here long enough they should be identified as Ugandans and the only way to do that is to list so that Ugandans can have a stake in that company,” the UCC head said.
“They should warm to the government desire to have some of their shares listed.”
In its 20 years in Uganda, MTN has dominated the market, with subscriber base growing to 10.7 million despite regulatory related disconnections that made the company disconnect 750,000 subscribers. Revenues also surged to $357.12 million in 2017.