Accra, Ghana//-With just 10 days to September 2021 in which MTN Ghana would be celebrating its four years of listing on the Ghana Stock Exchange (GSE), the telecoms giant is being celebrated by the market.
This also comes four years after Selorm Adadevoh-who is known for speaking the language of investors-took office in June 2018.
The Accra-based bourse had not experienced such a surge for several years. The share price for MTN Ghana (MTNGH) on GSE has been steadily improving ever since it was listed.
The MTN Ghana shares are currently the number one most traded stock on the GSE over the past three months.
The current share price of MTNGH is GHS 1.26. MTNGH closed its last trading day (Friday, August 20, 2021) at 1.26 GHS per share on the GSE.
The company began the year with a share price of GHS 0.64 and has since gained 96.9% on that price valuation, ranking it first on the GSE in terms of year-to-date performance.
Shareholders can be optimistic about MTNGH knowing the stock has accrued 7% over the past four-week period—fifth best on GSE, according to analyst.
MTN Ghana is the number one most traded stock on the GSE over the past three months (May 24 – Aug 20, 2021). The MTNGH has traded a total volume of 65.4 million shares valued at GHS 78.1 million over the period, with an average of 1.04 million traded shares per session.
While a volume high of 7.67 million was achieved on June 9th for the same period.
The table below details the last 10 trading days of activity of MTN Ghana on the Ghana Stock Exchange.
| Date | Volume | Close | Change | Change% |
| 2021-08-20 | 176,382 | 1.26 | ||
| 2021-08-19 | 506,774 | 1.26 | ||
| 2021-08-18 | 21,872 | 1.26 | ||
| 2021-08-17 | 5,613,899 | 1.26 | ||
| 2021-08-16 | 32,190 | 1.26 | ||
| 2021-08-13 | 1,334,571 | 1.26 | ||
| 2021-08-12 | 1,460 | 1.26 | ||
| 2021-08-11 | 7,269 | 1.26 | ||
| 2021-08-10 | 145,550 | 1.26 | ||
| 2021-08-09 | 423,892 | 1.26 |
Source: African Xchanges
With over 24 million customers, MTN Ghana shares are now approaching GHS 1.30, higher than its initial share of GHS 0.64.
The elated Chief Executive Officer of the MTN Ghana, Mr Adadevoh told editors and senior journalists at the company’s editors’ forum on Friday August 20, 2021 that the MTN stock represents close to 80% of trading on the GSE.
“Today, I am proud to say MTN Ghana represents close to 80 per cent of trades on the Ghana Stock Exchange”.
He is not going to rest on his oars as the company under his watch is looking forward to seeing more companies join the narrative.
In September 2018, Scancom PLC, the parent company of MTN Ghana completed an initial public offer in which 12.5% of its shares was listed on the GSE and nearly 130,000 Ghanaians were welcomed as shareholders in the company.
MTN Group, a leading emerging market telecoms operator in 22 countries in Africa and the Middle East has agreed with the Government of Ghana to sell down a further 12.5% of its investment in Scancom PLC, with a focus on local shareholding, which will increase Scancom PLC’s shareholding on the GSE to 25%.
Process of localisation underway
Taking journalists through the company’s 25 years journey, Mr Adadevoh said: “The process of further increasing localisation and deepening shared value is underway and we look forward to providing updates in future performance updates”.
To meet a regulatory requirement, MTN Ghana offered 4.64 billion shares in an effort to sell GHS 3.48billion in equity ownership to investors both Ghanaians and foreigners, which was 35% of the entire company.
In November 2015, MTN successfully bid for a 4G license, the National Communications Authority (NCA) awarded it on the condition that the company list on the GSE.
To be sure, this is consistent with MTN Ghana’s philosophy of making provision for substantial local stakeholder participation, but it still marks a major sacrifice for its parent company, which is giving up more than a third of its equity stake in one of its most profitable subsidiaries and indeed one that ranks among the most profitable companies in Ghana.
The management of GSE had been yearning for a telecoms issue for years and it didn’t come better than MTN’s. The company is a key player of an industry whose growth, worldwide is unparalleled by any other sector.
Surging voice and data
The telecoms company’s mobile voice subscriptions continue to grow while its competitors are struggling.
Indeed, MTN Ghana is a leading telco operator in Ghana. From its headquarters in Accra to Zuarungu in the Upper East Region, it offers voice, data, broadband, mobile financial and other digital services to its over 24 million customers across the length and breadth of the country.
The company’s network improvements coupled with the increased adoption of data and digital helped to accelerate growth in our customer base.
Subscribers increased by 23.4% year-on-year (YoY) to 24.4 million, with active data subscribers increasing by 32.4% YoY to 10.8 million and active Mobile Money users increased by 16.3% YoY to 10.6 million, according to the CEO
Nonstop network investments
In MTN’s bid to continue to invest to expand the network, an amount of GH¢995 million (US$149 million) has been committed for the 2021 modernization process.
While about $478 million has been invested in the network since 2019, no wonder, MTN Ghana was declared the best network for both Voice and Data in 2019 by Ookla, a global network speed testing company.
Indeed, since day one, Scancom Ltd (MTN Ghana) which was incorporated in 1994 as a private limited liability company but began operations in Ghana in 1996 has never put off its pedal on network investments.
“MTN has always seen Ghana as a market to invest in because of the confidence we have in the governance and political stability, policy predictability and consistent economic growth over the years and in recent time.
This appetite has driven our investment decisions to invest over six billion US dollars in infrastructure since inception”, the Chief Executive Officer of MTN Ghana, Selorm Adadevoh said the launch of the company’s 25th anniversary celebrations.
From 2G to 3G, 4G and currently 4G+ technologies
MTN Ghana continues to consistently be the first to launch innovative products and services. MTN first introduced GSM technology in Ghana and was the first to commercially launch all the generations of technologies: 2G, 3G, and 4G LTE and 4G+.
As a risk-taker, the company invested in 3G technology at a time when 3G devices were not available in the country and if they were, they were not affordable.
Similarly, MTN Ghana invested in 4G technology by acquiring 4G 800MHz FDD spectrum license for $67.5 million in December 2015. But it deployment started in June 2016.
This innovative technology was described by industry experts as ‘transformational’.
4G LTE is five to 10 times faster than 3G. This means faster internet download and upload speeds. Overall, the data experience of MTN subscribers is improved significantly, according to senior officials of MTN Ghana.
Subsequently, the telecoms service provider upgraded the 4G service to 4G+service in March 2019 to provide faster data speeds with widest coverage for its customers irrespective of their locations.
The 4G+ service which runs on 4G LTE Advanced technology using the combination of the 800MHz and 2600MHz for carrier aggregation is an enhancement on the 4GLTE experience.
This provides more capacity and enhanced data speed of up to 20 times if migrating from 3G to 4G+ and five times if migrating from 4G to 4G+.
The company is confident that the 4G+ technology would further impact the development of the country as it provides more opportunities for Ghanaians to fully utilize digital services.
Additionally, it would also go to support the growth of the country in the areas of Artificial intelligence, Internet of Things and Big Data.
With faster internet and wider coverage, the transmission of data can be done with ease, on-the-go, with the best speed everywhere. Higher speed internet broadband promotes business growth and enriched social lives, ultimately boosting national development.
5G is coming
Mr Adadevoh is optimistic that it is in line with the desire to constantly adapt and embrace new trends that MTN Ghana is working hard with partners to launch 5G network in the country in 2022.
MTN through its new strategy, Ambition 2025 aims at building the largest and most valuable platform business in Africa. One of the strategic pillars of the Ambition 2025 is FinTech Solutions.
Contribution to economy
Significantly, MTN Ghana is not just one of the most used companies in the country with regards to its products and services; it is also arguably the most loved as well as by both the Government of Ghana and wider society in general.
The government admires it, for its contribution to the national purse, for the past 25 years, MTN Ghana consistently contributes over 3% of Ghana’s entire annual tax revenues.
For instance, in 2020 alone, MTN Ghana’s total payments in tax to the government amounted to GHS 2.6 billion, representing 6% of the total national tax revenue.
“We take our statutory obligations seriously and have ensured our commitment to our tax obligations which has been recognized two years running where MTN has been adjudged “the number 1 taxpayer” and “the largest taxpayer in the country” by both the Ghana Investment Promotion Council (GIPC) and the Ghana Revenue Authority (GRA)”.
Additionally, MTN Ghana is said to be the highest payer of the National Fiscal Stabilisation Levy (NFSL) as data from the company revealed.
The telecoms operator just last year paid a huge amount of GH₵ 101 million, representing 21% of overall NFSL received in that year.
Major collector of CST
MTN Ghana through its MTN network also collected 70% of overall Communication Service Tax (CST) which is GHS 389 million for the government last year.
Besides, the company recognizes that its role in Ghana’s economic growth and future goes beyond its statutory obligations. It has a role to play in deepening the digital ecosystem and ensuring connectivity for all including rural communities, as part of supporting the government’s ambition for a digital Ghana.
Creation of employments
Furthermore, MTN Ghana supported micro enterprises, executed the business incubator project, supported surgeries for life-threatening ailments and embarked on the Y’ello Care- employee volunteer programme, among others.
Through its ecosystem of partnerships and suppliers, the company has also generated thousands of jobs for the youth while thousands of Ghanaians are being employed by MTN Ghana and its MobileMoney Limited subsidiary in the West African country.
Social investments
It is MTN Ghana’s fervent belief that businesses exist today for reasons beyond financial returns. This is what has fuelled its consistent commitment to invest in education, health and economic empowerment through the MTN Foundation with over 187 projects since inception.
The Foundation which was set up in 2007 as a single purpose vehicle to drive all MTN Ghana’s corporate social responsibility (CSR) initiatives in the country currently has three focus areas- Health, Education and Economic Empowerment.
It is set up as a separate legal entity with its own independent Board of Directors and Patrons who oversee its operations.
The Foundation’s commitment is centred on the socio-economic development of the country through the unveiling of appropriate and sustainable social interventions in communities across the country.
The Foundation which is funded by a percentage of profit after tax (PAT) from MTN Ghana hopes that its initiatives will strengthen and deepen the collective efforts of key stakeholders who are working towards a healthy nation.
Since its establishment, the Foundation has invested $13.5 million in 157 projects in its focus areas which are estimated to have impacted over four million people across the country, Mr Adadevoh said.
Out of the total number of projects, the Foundation has invested in 87 education projects and they include ultra-modern technology laboratory for the Ghana Institute of Public Administration (GIMPA), a 600-bed Girls’ Dormitory and an adjoining house mistress bungalow for Tamale Senior High School (SHS) and, ICT Centre for Mangoaso R.C Basic School.
Also, as far back as 2002, Scancom Plc had already set up the Spacefon Scholarship Scheme which has now become the MTN BRIGHT Scholarship program.
This scholarship scheme has provided assistance to thousands of needy and brilliant students all over the country since the days of Spacefon and its commitment continues in this respect.
The Foundation has executed 52 health projects, as well as numerous smaller initiatives in various communities to brighten lives in all 16 regions of Ghana, since its establishment.
Health is one of three focus areas of the Foundation, and its project selection criteria according to senior officials of the Foundation, is aligned to the achievement of the United Nations (UN) Sustainable Development Goals (SDGs), should reflect the real needs of the community, and sustainability.
Besides the provision of these health facilities, health equipment, blood donations, distribution of mosquito nets and payment of surgeries of the vulnerables, the Foundation also provided potable water for communities by funding the drilling of boreholes, thereby helping to prevent water-borne diseases.
By Masahudu Ankiilu Kunateh, African Eye Report
