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We also have investments in tower companies and our e-commerce joint ventures. Our most
significant investment is a 29% stake in IHS Group, which owns 23 300 towers across Africa.
Over time we want to partially monetise this shareholding, which we hold as an ‘asset available
for sale’.
Through what we call the functional steering from the group, we aim to drive the best possible
performance out of the opcos. Getting this right would mean that MTN would be well positioned
to expand the portfolio should the right opportunities present themselves in the future.
Q
What do the leadership changes at group level mean for MTN?
A
There are many things that differentiate MTN (see our investment case on page 100), but I believe
the biggest differentiator for performance in the long term is a unique corporate culture. We
are building a culture of openness, professionalism and excellence, where people work in a more
organic way. While many of the opcos have already been operating like this, it is fair to say that
theheadofficehasbeenmore traditionallyorientedand incertainareashasbeenunderresourced.
It has tended to focus on the medium and small opcos, while the biggest prize is in the big
businesses.
Now, with a thin layer of highly skilled resources at the centre, many of the large opcos are
leaning into the group to tap into this. We are fundamental believers in a decentralised model,
with high-level functional steering from the centre. Properly executed, it is a real differentiator.
We made a lot of progress on this in 2017, and the latest global culture audit bears this out (see
page 80).
Q
Tell us about MTN’s regulatory environment. What measures have you put in
place to address regulatory compliance across your markets?
A
This is a very complex area with 22 markets, each with very different regulators, regulations and
agendas. Our international investors are probably used to a more harmonised regulatory
environment, such as that across the EU. While part of the complexity stems from the fact that
we are in so many different countries; some is because economies are under pressure; and
another part comes from the overlap between telecoms, media and financial services in a
converging world.
In 2017 we materially enhanced the management structure (both at the centre as well as at
operations) to support regulatory compliance. Our engagements with regulators, government
authorities and international bodies became more targeted. We elevated the regulatory function
to the group executive committee level and introduced more internal controls.
Given the complexity of the regulatory space, this is an area on which we work continuously.
Q
What does the year ahead hold for MTN?
A
Alongside our many stakeholders, we continue our work to build a resilient and sustainable MTN.
This means a group that behaves in a socially responsible way and provides the best customer
experience, improved returns and enhanced commercial performance. It means a group that
rolls out access to the internet and to financial services to a broader population, has engaged
employees, an impeccable reputation for legal compliance and good governance, as well as one
that provides excellent networks and infrastructure. To achieve this, we will continue to implement
and deliver on the BRIGHT strategy, communicating progress against our KPIs (see page 6).
MTN Group Limited
Integrated Report 2017
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Strategic and
financial review