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    NSSF Increases Stake in MTN to 11.7 Following Additional Purchase

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    NSSF Increases Stake in MTN to 11.7 Following Additional Purchase
    • June 21, 2024 • 1 month ago
    in summary
    The National Social Security Fund (NSSF) has increased its stake in MTN Uganda to 11.7. This comes after an additional purchase of shares, building on its initial public offering (IPO) holding of 8.84.

    The NSSF, Uganda's largest pension fund, has long been an influential player in the country's investment landscape. Its latest acquisition shows great support for MTN Uganda's growth prospects and operational performance. MTN Uganda, a subsidiary of MTN Group, is one of the leading telecommunications providers in the country, offering a range of services including mobile voice, data, and mobile money.

    NSSF Uganda (@nssfug) / X

    The decision to increase its stake in MTN Uganda aligns with NSSF's broader investment strategy, which focuses on maximizing returns for its members through diversified and well-considered investments. By boosting its shareholding in MTN, NSSF not only solidifies its position as a major investor in the telecom sector but also reinforces its commitment to investing in high-growth potential sectors of the Ugandan economy.

    Richard Byarugaba, the Managing Director of NSSF, highlighted the reason behind this investment.

    “Our increased stake in MTN Uganda is a testament to our confidence in the company’s ability to deliver consistent value to its shareholders. We believe in the long-term growth trajectory of the telecom sector, and MTN is well-positioned to leverage emerging opportunities in digital and mobile services,” he stated.

    For MTN Uganda, the increased investment by NSSF is a substantial vote of confidence. It not only provides the company with additional capital to fuel its expansion plans but also strengthens its shareholder base with a long-term, stable investor. MTN Uganda has been on an aggressive expansion path, with plans to launch more advanced network infrastructure, improve service delivery, and expand its mobile money services.

    Wim Vanhelleputte, the CEO of MTN Uganda, expressed his satisfaction with NSSF’s increased stake.

    “We are delighted to see NSSF deepen its investment in MTN Uganda. This is a strong endorsement of our strategy and performance. With the backing of such a great investor, we are more confident than ever in our ability to execute our vision of delivering a bold new digital world to our customers,” he said.

    NSSF’s investment comes at a time when the telecommunications sector in Uganda is experiencing rapid growth. The sector has been encouraged by increased mobile penetration, the growth of smartphones usage, and a growing demand for internet and mobile money services. According to the Uganda Communications Commission, the number of mobile phone subscriptions in the country continues to rise, with a corresponding increase in data usage and mobile financial transactions.

    The COVID-19 pandemic also accelerated digital adoption, with more Ugandans relying on mobile and internet services for work, education, and financial transactions. This has created a fertile ground for telecom companies like MTN expand their offerings.

    With NSSF’s enhanced stake, MTN Uganda is set to capitalize on these trends. The company has outlined ambitious plans to expand its 4G network coverage, introduce 5G technology, and deepen its financial inclusion efforts through mobile money services. The additional investment from NSSF will be instrumental in driving these initiatives forward.

    For NSSF, the increased holding in MTN Uganda represents a strategic bet on the future of digital services in the country. It aligns with the fund’s goal of generating sustainable returns for its members while contributing to the broader economic development of Uganda.

    The NSSF’s decision to increase its stake in MTN Uganda to 11.7% reflects a mutual confidence in the two companies' potential and shared visions for the future. As MTN Uganda continues to innovate and grow, the support from a major institutional investor like NSSF will be important in navigating the ever changing telecommunications industry and delivering value to both shareholders and customers.

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