Accra, Ghana//-MTN has reaffirmed its commitment to creating shared value in Ghana at such a critical time of the country’s economy.
MTN Group’s subsidiary, MTN Ghana in its 2022 financial statement stated: “MTN is committed to improving the lives of Ghanaians through appropriate and sustainable socioeconomic interventions”.
Over and above the investment in our network and IT systems, the leading telecoms company allocated GH₵ 28.3 million to undertake health, education, and economic empowerment projects in 2022 through the MTN Ghana Foundation.
Economy
Since its inception in 1996, MTN Ghana has had a significant impact on the Ghanaian economy through contribution to Ghana’s long-run economic and fiscal stability and gross domestic product (GDP), employment creation, promotion of digital and financial inclusion, promotion investment and innovation in the wider economy, social investments, among others.
The company also continues to impact almost all the sectors of the Ghanaian economy. “MTN Ghana remained a development partner to the government through our contribution to the fiscal and socio-economic development of the country”, the Chief Executive Officer of MTN Ghana, Selorm Adadevoh emphasised.
Commitment to tax obligations
The company takes its statutory obligations seriously and ensures its commitment to its tax obligations which has been recognised several years running where it has been adjudged “the number 1 taxpayer” and “the largest taxpayer in the country”.
Both the Ghana Investment Promotion Council (GIPC) and the Ghana Revenue Authority (GRA) have bestowed this accolade on MTN Ghana.
For instance, in 2022 alone, MTN Ghana’s contributed GH₵3.7 billion in direct and indirect taxes and GH₵301.7 million in fees, levies, and other payments to governmental agencies. Combined, this represented 40.1% of MTN’s total revenue for the period, according to the company’s 2022 financial report.
This shows a significant increase when compared with that of 2020 which was the deadly period of the COVID-19 crisis.
In 2020 alone, MTN Ghana’s total payments in tax to the government amounted to GH₵2.6 billion, representing 6% of the total national tax revenue.
Additionally, MTN Ghana is the highest payer of the National Fiscal Stabilisation Levy (NFSL) as several data from the company revealed.
The telecoms operator in 2020 paid a huge amount of GH₵101 million, representing 21% of overall NFSL received in that year.
Major collector of Communication Service Tax
MTN Ghana through its MTN network also collected more than 70% of overall Communication Service Tax (CST).
Besides, it recognises that its role in Ghana’s economic growth and future goes beyond its statutory obligations.
As the industry leader, MTN Ghana 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.
Partnerships
In April 2022, MTN Ghana signed a national roaming agreement with Vodafone, commencing a pilot programme which allowed Vodafone subscribers in the Volta Region to roam on MTN’s network.
Following the success of the pilot, the parties signed a one-year agreement to extend national roaming on 2G beyond in that region to other areas of the country.
MTN also reached an agreement with AirtelTigo for a four-month national roaming pilot to allow AirtelTigo subscribers to roam on MTN’s network in selected locations across the country.
“These agreements, together with various other rural telephony initiatives in partnership with the government, support our work to increase digital inclusion”, the MTN Ghana CEO said.
These partnerships he believes will increase the efficiency of infrastructure spend in the industry overall, expand quality telecom coverage, accelerate the development and long-term viability of the telecoms industry, and support the national agenda of building a digital economy.
Provision of key telecoms services
Furthermore, MTN Ghana which provides a wide range of mobile and broadband services in the country is promoting digital inclusion, making it possible for millions of Ghanaians to benefit from the exchange of ideas and information.
It also provides an avenue for reduced communication costs and improved access to education, healthcare, financial services, and others which are critical for the socio-economic development of Ghana.
It is an indisputable fact that mobile services increase productivity by improving the availability of information and reducing transaction costs and enable businesses and markets to operate more effectively and efficiently.
Supporting investment and innovation
These services being provided by MTN Ghana support investment and innovation in the economy. For instance, the provision of network equipment and the creation of business services and applications that leads to greater economic growth.
In MTN’s bid to continue to invest to expand the network, an amount of GH¢995 million (US$149 million) was committed for the 2021 modernisation process.
While about $478 million had 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, MTN Group CEO and President Ralph Mupita told journalists in one of his visits to Accra.
This appetite has driven MTN investment decisions to invest billions of US dollars in infrastructure since inception.
Social investments
It is MTN Ghana’s fervent belief that businesses exist today for reasons beyond financial returns. This is what has fueled 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 over $13.5 million in 157 projects in its focus areas which are estimated to have impacted over four million people across the country, according to senior officials of the Foundation.
Out of the total number of projects, the Foundation has invested in over 87 education projects, and they include the ongoing construction of a 60-bed maternity and neonatal centre for the Keta Municipal Hospital and a STEM robotics lab for the Mamfe Girls’ School.
Through these and other investments made in universities and other higher learning institutions across the country, digital inclusion and innovation are being sustained.
Additionally, as far back as 2002, Scancom Plc, the parent company of MTN Ghana had already set up the Spacefon Scholarship Scheme which has now become the MTN BRIGHT Scholarship program.
This scholarship scheme has helped thousands of needy and brilliant students all over the country since the days of Spacefon and its commitment continues in this respect. The Foundation in 2022 awarded scholarships to another 100 batch of students at various educational institutions.
The Foundation has executed more than 52 health projects, as well as numerous smaller initiatives in various communities to brighten lives in all 16 regions of Ghana, since its establishment.
Besides the provision of these health facilities, health equipment, blood donations, distribution of mosquito nets and payment of surgeries of the vulnerable, the Foundation also provided potable water for communities by funding the drilling of boreholes, thereby helping to prevent water-borne diseases.
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.
In 2022, MTN partnered with select distributors to launch the Liquidity Support Agent Scheme, helping mobile money (MoMo) agents who subscribed to the service to access liquidity to support their business operations.
Deepening Financial Inclusion
Economic and Financial Journalist and President of Journalists for Business Advocacy (JBA), Suleiman Mustapha hailed the facilitation of money transfers and payment of utilities between individuals and across sectors has become enormous.
MobileMoney Limited which is the mobile financial service firm of MTN Ghana has enabled investment in Treasury Bills possible withTBILL4ALL product in partnership with Ecobank.
On MoMo today, customers are not just sending and receiving money or paying bills, MoMo is now used for Saving, Investing, Payments, Shopping, Insurance and Loan acquisition.
Bottom line
MTN prides itself in its high ethical standards upon which its operations are run. So, it is still sticking to its commitment of creating shared value for all Ghanaians despite this tight period.
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