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Exposure to currencies other than
reporting currency (ZAR) impacting
reported financial results and
servicing foreign-denominated
obligations |
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Fluctuations in the exchange rate can be
favourable to reported rand results and
servicing of obligations |
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Contribution to the development of the
local banking industry |
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Upstreaming of cash |
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Efficient local balance sheets |
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Local currency funding strategy, including gearing and upstreaming
principles |
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Management of foreign-denominated assets and liabilities to
minimise impact |
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Treasury policy and committee oversight for risk management |
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A sustainable payout ratio coupled with opportunistic buybacks |
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Exposure to higher risk countries
Challenges include but not limited
to poor infrastructure, political and
social unrest, sanctions, irrational
competition and violations of
human rights |
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Potentially higher reward and scope for
growth |
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Provide key communications infrastructure |
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Grow formal economy, bring transparency,
accountability and corporate structure |
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Commitment to support local ownership |
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Enterprise development |
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Opportunistic diversification of the portfolio |
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Independent and dedicated risk management team which monitors
country risks and business continuity |
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Appropriate governance structures |
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MTN adopts a neutral stance although does engage through a
dedicated stakeholder function |
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Ongoing vigilance in respect of sanctions compliance through legal
support and appropriate policies and controls |
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Social and ethics committee provides direction for decisions on social
and ethical challenges |
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Increased regulatory requirements
impacting commercial business |
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Sufficient spectrum key for providing
new products in line with evolving
sector |
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Imposed taxes impacting profitability |
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Communications is a key element of
infrastructure to a country |
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Proactive engagement with regulators
contributing to the development of the
sector given the experience and credibility
of operating across multi-jurisdictions |
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Often the largest national taxpayer |
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Continued constructive and transparent engagement with authorities
at a Group and country level to ensure the success of social and
commercial imperatives |
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Group-wide tax risk management process to proactively as well as
reactively consider the implications of changing legislation |
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Local market equity and credit exposure to MTN reduces the risk of
irrational behaviour |
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Slowing revenue growth as a result
of increased voice penetration,
aggressive competition and
substitute products “Go to market”
strategies as the market
demand shifts |
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Creating more affordable voice and data
technology solutions to lower-income
segments of the market |
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Broader social impact on related services in
line with data strategy include banking the
“unbanked”, health and relevant
social initiatives |
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Broader and deeper penetration of the traditional voice market |
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A coordinated implementation of new data and related services through
a dedicated Group Commercial Function |
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Investments in undersea cables will allow for cheaper broadband which
will in turn make data products more affordable and accessible |
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Evolution of the business into a fully fledged ICT player |
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| Efficiently manage costs to offset impact
of slowing revenue growth in order to
sustain profitability levels |
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Enhancing shareholder value through the
monetisation of assets |
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Creating efficiencies allowing the Company
to maintain competitiveness and enhance
speed to market |
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Improved customer service |
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Leverage scale and improve consistency
and standardisation |
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Managing costs across the supply chain to better respond to the evolving
business model |
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Focus areas include: |
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– |
Rationalisation of suppliers through a centralised procurement function |
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– |
Standardisation of network infrastructure for efficient launch of products
and services |
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– |
Infrastructure sharing through the establishment of tower companies
(Ghana and Uganda) |
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– |
Shared services, alternative energy, improving efficiency of the distribution
channel, as well as tools such as ABC to leverage best practice |
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| Shortage of skilled human resources
in emerging markets exacerbated by
competition in search of similar expertise.
This results in high retention costs for
experienced staff |
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Staff advance their learning and
development through dynamic nature of
business |
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The diversity of the footprint in terms of size
of operations as well as location and maturity
adds to the benefits MTN can
offer employees |
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MTN strives to be an employer of choice |
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Ongoing review and enhancement of retention incentives to staff |
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Talent management programme headed by a talent board is aimed at
building leadership succession pools |
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MTN Academy’s learning initiatives including the creation of a leadership
development programme |
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| Timeous, effective and efficient capital
investments for the upgrading of network
and information technology (IT) to cater
for subscriber acquisition and increased
traffic as a result of price reductions.
Planning of networks and IT upgrades to
cater for new product developments and
ensure an appropriate ROI |
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Infrastructure sharing addressing
environmental issues including CO2
challenges |
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Energy-efficient strategies including solar
powered base stations and engineered
solution |
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Reductions in costs of network equipment
provide an opportunity to penetrate lower
income segments of the market |
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Networks are monitored continuously, ensuring quality and headroom capacity |
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Standardisation and optimisation of systems and technologies together
with outsourcing of non-core activities provide reduced costs and ensure
discipline and focus on critical business requirements |
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Infrastructure sharing |
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Capital expenditure steering committees to drive the initiatives
implemented by the Group’s CTIO’s office |
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| A customer centric approach becomes
critical as the business evolves. Key
elements include maintaining a positive
brand perception, broad availability of
products and services, high quality and
consistent customer experience at all
customer touchpoints |
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Enterprise development for local
entrepreneurs |
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SME engagement |
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Informal distribution channels have created
job opportunities |
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Implementation of a streamlined distribution framework which includes an
enhanced and effective footprint to ensure broad and deep distribution |
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Customer service also forms part of the distribution framework and
includes the regular training for store and call centre staff on new
developments relating to products and services. This is aimed at enhancing
customer experience |
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| Governance and control is critical in
all areas to maintain profitability and
business continuity. Implementation of
procedures of mature and well-controlled
processes is key |
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Adequate governance gives comfort and
confidence to stakeholders across the value
chain when dealing with MTN |
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Maturity of MTN’s control environment and governance structures
continues to improve although there will always be areas of particular focus |
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Comprehensive governance and oversight structures exist including audit
committees, risk committees, internal audit, fraud prevention and risk
management measures covering all OPCOs |
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MTN has done a comprehensive assessment of the King III requirements
including combined assurance, IT governance and integrated reporting |
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| Integrating environmental and social
considerations in business activities
ensuring MTN is responsible and sensitive
to the impact of the environment and
society when conducting business |
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Reducing MTN’s environmental impact across
operations and value chain |
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Contributing to the social upliftment and
development of communities |
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Environmental impacts are addressed cross functionally and include
infrastructure sharing which reduces MTN carbon footprint, energy-efficient
solutions, e-waste management and managing EMF and RF field responsibly |
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Social development is inherent in the nature of the business and is addressed
by providing products and services that are value enhancing to society.
MTN’s operations invest in communities through MTN Foundations focused
on education, health and other social and economic upliftment projects |
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