Notes to the Group financial statements | Note 20
for the year ended 31 December 2010

        December
2010
Rm 		    December
2009
Rm		   Denominated
currency		   Description of
borrowing		  
20.   BORROWINGS                    
    Unsecured                    
    South and East Africa   670     863          
    MTN Mobile Money SA   258     268          
        258     268   ZAR   Term loan from JV partner  
    MTN Zambia Limited   155     215          
        155     215   ZMK   Syndicated term loan facility  
    MTN Rwandcell S.A.R.L   221     346          
        158     217   USD   Export credit guarantee backed  
                      term loan facility  
        63     129   RWF   Syndicated term loan facility  
    Swazi MTN Limited   28     34          
        8     9   SZL   Bilateral term loan facility  
        13     15   SZL   Bilateral term loan facility  
        7     10   SZL   Bilateral term loan facility  
    Satellite Data Networks Mauritius Proprietary Limited   8     —          
        8     —   USD   Long-term loan  
    West and Central Africa   11 868     13 753          
    MTN Côte d’Ivoire SA   297     286          
        —     21   XOF   Bilateral short-term loan facility  
        —     4   XOF   Bilateral short-term loan facility  
        —     81   XOF   Bilateral short-term loan facility  
        —     16   XOF   Bilateral short-term loan facility  
        111     164   XOF   Long-term loan – Various  
        173     —   XOF   Various bilateral short-term loan  
                      facilities  
        13     —   XOF   Bilateral short-term loan facility  
    MTN Nigeria Communications Limited   10 331     12 008          
        8 920     3 157   NGN   Syndicated term loan facility  
        1 242     3 717   USD   Syndicated term loan facility  
        84     1 531   NGN   Syndicated credit facility  
        85     1 406   USD   Syndicated term loan facility  
        —     2 197   USD   Syndicated term loan facility  
    MTN Congo SA   190     293          
        190     293   XAF   Syndicated term loan facility  
    MTN Cameroon Limited   404     605          
        404     492   XAF   Syndicated term loan facility  
        —     48   XAF   Bilateral term loan facility  
        —     65   XAF   Bilateral term loan facility  
    Spacetel Benin SA   539     443          
        539     443   XOF   Syndicated term loan facility  
    Lonestar Communications Corporation LLC (Liberia)   107     118          
        66     74   USD   Bilateral term loan facility  
        41     44   USD   Bilateral term loan facility  
    Middle East and North Africa   840     740          
    Irancell Telecommunication Services Company   573     313          
    (Proprietary) Limited                    
        —     151   IRR   Bilateral short-term facility  
        —     26   IRR   Vendor finance facility  
        —     9   USD   Vendor finance facility  
        301     —   EUR   Vendor finance facility  
        272     127   EUR   Vendor finance facility  
    MTN Sudan Company Limited   23     107          
        23     107   EUR   Bilateral term loan facility  
    MTN Cyprus Limited   244     320          
        —     47   EUR   Syndicated term loan facility  
        2     3   EUR   Bilateral term loan facility  
        5     1   EUR   Bilateral term loan facility  
        232     269   EUR   Bilateral term loan facility  
        5     —   EUR   Bilateral term loan facility  
    Head office companies   19 560     17 478          
    MTN Holdings (Proprietary) Limited   18 799     16 480          
        1 230     2 763   USD   Syndicated term loan facility  
        1 750     3 500   ZAR   Syndicated term loan facility  
        6 000     3 917   ZAR   Syndicated term loan facility  
        —     5 000   ZAR   Domestic medium term note  
        1 300     1 300   ZAR   Domestic medium term note  
        1 250     —   ZAR   Domestic medium term note  
        1 250     —   ZAR   Domestic medium term note  
        1 500     —   ZAR   Domestic medium term note  
        499     —   ZAR   Commercial paper  
        984     —   ZAR   Commercial paper  
        508     —   ZAR   Commercial paper  
        1 016     —   ZAR      
        503     —   ZAR      
        504     —   ZAR      
        505     —   ZAR      
    MTN International (Mauritius) Limited   761     998          
        —     998   USD   Bilateral short-term loan facility  
        761     —   USD   Bilateral short-term loan facility  
    Total unsecured borrowings   32 938     32 834          

    Type of interest charged Nominal*
interest rate
%		 Effective**
interest rate
%		   Repayment details  
               
               
               
    No interest — —   No set repayment term  
               
    Variable interest rate 7,00 9,00   Semi-annual. Final repayment – December 2012  
               
    Variable and fixed interest rate 2,76 2,76   Semi-annual. Final repayment – September 2014  
               
    Variable interest rate 15,00 15,00   Monthly. Final repayment – September 2014  
               
    Variable interest rate 8,00 13,00   Monthly. Final repayment – September 2012  
    Variable interest rate 9,00 13,00   Monthly. Final repayment – June 2013  
    Variable interest rate 9,00 12,00   Monthly. Final repayment – October 2013  
               
    Fixed interest rate 4,00 4,00   Capital – bullet payment  
               
               
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate 8,25 8,28   Monthly. Final repayment – December 2014  
    Fixed interest rate 7,00 7,00   Monthly. Final repayment – March 2011  
               
    Fixed interest rate 7,50 7,50   Monthly. Final repayment – March 2011  
               
    Variable interest rate 12,00 12,00   Annual. Final repayment – December 2015  
    Variable interest rate 2,00 2,00   Final repayment – October 2012  
    Variable interest rate 1,00 1,00   Final repayment – October 2012  
    Variable interest rate 3,00 3,00   Final repayment – October 2012  
    Variable interest rate — —   Loan repaid during the year  
               
    Fixed interest rate 8,25 8,80   Monthly. Final repayment – December 2013  
               
    Fixed interest rate 6,00 6,00   Semi-annual. Final repayment – May 2015  
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate — —   Loan repaid during the year  
               
    Fixed interest rate 8,00 9,00   Semi-annual. Final repayment – August 2014  
               
    Fixed interest rate 11,00 11,00   Tri-annual. Final repayment – June 2012  
    Variable interest rate 11,00 11,00   Semi-annual. Final repayment – August 2014  
               
               
               
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate — —   Loan repaid during the year  
    Variable interest — —   Loan repaid during the year  
    Variable interest 6,25 6,60   Final repayment – March 2012  
    Variable interest 5,25 5,71   Semi-annual. Final repayment – December 2012  
               
    Variable interest rate 4,00 4,00   Semi-annual. Final repayment – June 2011  
               
    Variable interest rate — —   Loan repaid during the year  
    Variable interest rate 6,00 6,00   Quarterly. Final repayment – July 2011  
    Variable interest rate 6,00 6,00   Monthly. Final repayment – May 2015  
    Variable interest rate 3,00 5,20   Semi-annual. Final repayment – December 2020  
    Variable interest rate 3,25 5,20   Quarterly. Final repayment – March 2014  
               
               
    Variable interest rate — 1,00   Semi-annual. Final repayment – July 2011  
    Variable interest rate — 7,00   Semi-annual. Final repayment – July 2011  
    Variable interest rate — 7,80   Final repayment – June 2013  
    Fixed interest rate — —   Loan repaid during the year  
    Fixed interest rate 10,19 10,19   Maturity – July 2014  
    Fixed interest rate 9,36 9,36   Maturity – July 2015  
    Fixed interest rate 10,13 10,13   Maturity – July 2017  
    Fixed interest rate 7,80 7,80   Maturity – October 2013  
    No interest — 6,27   Maturity – January 2011  
    No interest — 7,00   Maturity – April 2011  
    Variable interest rate — 7,00   Maturity – July 2011  
    Variable interest rate — 7,04   Maturity – January 2011  
    Fixed interest rate — 5,90   Maturity – January 2011  
    Fixed interest rate — 6,10   Maturity – February 2011  
    Fixed interest rate — 7,00   Maturity – January 2011  
               
    Variable interest rate — —   Loan repaid during the year  
    Variable interest rate 1,80 1,94   Final repayment – March 2011  
               
    * Nominal interest rates are the interest rates on the loans (whether NACM, NACQ, NACS, NACA) as at 31 December 2010.
** Effective interest rates are calculated as follows: interest paid in 2010/weighted average capital balance x number of days/365.

        December
2010
Rm 		    December
2009
Rm		   Denominated
currency		   Description of
borrowing		  
    Secured                    
    South and East African   991     1 270          
    MTN Uganda Limited   464     749          
        332     447   UGX   Syndicated term loan facility  
                         
        132     148   USD   Syndicated term loan facility  
                         
        —     154   UGX   Revolving credit facility  
                         
    MTN Zambia Limited   527     521          
        527     521   USD   Vendor finance facility  
                         
    West and Central Africa   1 046     1 323          
    MTN Côte d’Ivoire SA   999     1 323          
        876     1 131   XOF   Syndicated term loan facility  
        123     192   XOF   Bilateral term loan facility  
    MTN Congo SA   47                
        47     —   XAF   Term loan facility  
                         
    Middle East and North Africa   313     63          
    MTN Sudan Company Limited   313     63          
        19     63   SDG   Bank borrowings against purchase  
                      of land and buildings  
        41     —   EUR   Vendor finance facility  
                         
        253     —   USD   Vendor finance facility  
    Head office companies   —     74          
    MTN (Dubai) Limited   —     74          
        —     74   USD   Bilateral term loan facility  
    Total secured borrowings   2 350     2 730          
    Total unsecured borrowings   32 938     32 834          
    Bank overdraft   40     1 353          
    Total borrowings   35 328     36 917          

    Type of interest charged Nominal*
interest rate
%		 Effective**
interest rate
%		   Repayment details Security  
                 
                 
    Variable interest rate 13,00 11,00   Quarterly. Final repayment – October 2014 Floating charge over current  
              and future assets  
    Variable interest rate 4,00 5,00   Quarterly. Final repayment – October 2014 Floating charge over current  
              and future assets  
    Variable interest rate — —   Loan repaid during the year Floating charge over current  
              and future assets  
                 
    Variable interest rate 3,00 4,00   Semi-annual. Final repayment – June 2013 Pledge of specific network  
              assets under a supply contract  
                 
                 
    Fixed interest rate 8,00 9,00   Semi-annual. Final repayment – March 2014 Pledge of assets  
    Variable interest rate 8,00 8,00   Quarterly. Final repayment – July 2014 Pledge of assets  
                 
    Fixed interest rate 7,00 7,00   Monthly. Final repayment – January 2014 Pledge of property, plant and  
              equipment  
                 
                 
    Fixed interest rate 12,00 13,70   Semi-annual. Final repayment – September 2011 Pledge of property  
                 
    Variable interest rate 7,00 6,50   Quarterly. Final repayment – June 2020 Pledge of equipment  
                 
    Fixed interest rate 10,00 10,20   Quarterly. Final repayment – December 2016 Pledge of equipment  
                 
                 
    Variable interest rate — —   Loan repaid during the year Cash collateral  

          December
2010
Rm		       December
2009
Rm		  
    The maturity of the above loans and overdrafts is as follows:                
    Payable within one year or on demand     10 471       15 851  
    Current borrowings     10 431       14 498  
    Bank overdrafts     40       1 353  
    More than one year but not exceeding two years     4 019       4 847  
    More than two years but not exceeding five years     19 178       14 999  
    More than ve years     1 660       1 220  
          35 328       36 917  
    Less: Amounts included within current liabilities     (10 471)       (15 851)  
    Amounts included in non-current liabilities     24 857       21 066  
    The fair values of all borrowings and bank overdrafts approximate their book values.                
                     
    The carrying amounts of the Group’s borrowings are denominated in the following currencies:                
    South African rand     17 826       13 985  
    US dollar     4 418       7 045  
    Nigerian naira     9 089       9 811  
    Uganda shilling     332       601  
    Euro     881       554  
    Congo-Brazzaville Communaute Financière Africaine franc     237       293  
    Sudanese pound     20       63  
    Iranian rials     —       177  
    Benin Communaute Financière Africaine franc     539       443  
    Cameroon Communaute Financière Africaine franc     404       605  
    Côte d’Ivoire Communaute Financière Africaine franc     1 296       1 609  
    Rwanda franc     63       129  
    Zambian kwacha     155       215  
    Swazi lilangeni     28       34  
    Other     40       1 353  
          35 328       36 917  
    The Group has the following undrawn facilities:                
    Floating rate     7 473       5 119  
    Fixed rate     —       583  
          7 473       5 702  
    Further details of the Group’s finance lease commitments are provided in note 34 to the financial statements.