Prime News Ghana

MTN Ghana repatriates GH¢118.72 million to Group

By Primenewsghana
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The MTN Group has reported that MTN Ghana repatriated some US$10.5 million (GH¢118.72 million) to the group in the first half of this year ending June 30, 2023. 

Per the group’s half year report, its saw upstream cash totalling a little over US$221 million from its operating companies in the reporting period, noting that whereas both South and Nigeria contributed US$73.7 million each, MTN Ghana contributed only US$10.5 million.

This is just a fraction of the GHS2.98 billion (US$251 million) MTN Ghana paid in taxes, fees, levies and other payments to government agencies over the same period.

Regarding the impact of the repatriation of funds on the strength of the Ghana cedi, Chief Finance Officer at MTN Ghana, Antoinette Kwofie said all shareholders of the company, include the MTN Group, are paid in Ghana cedis into their local bank accounts so there is no cause for worry about the impact of payments to shareholders on the cedi.

MTN Ghana is the only significant market power (SMP) and the only real profitable player in Ghana’s telecom industry.

Vodafone Ghana, 70% of which has recently been acquired by the Telecel Group, and AirtelTigo (now AT Ghana), which is now owned by the government of Ghana, have both been unprofitable for several years. Both telcos became liabilities to their mother companies, hence the transfer of shares to other entities.

In the midst of the challenging times for the two telcos, MTN Ghana has been growing in leaps and bounds to the extent of being described by the Group President and CEO Ralph Tendai Mupita as “the jewel in the crown” of the group.

In Ghana, MTN keeps making huge investments in the network, paying the highest taxes in the country and also making huge contributions in the area corporate social investments.

Ahead of the group’s half year report, MTN Ghana had reported that in the first half of the year, it invested over GHS2.2 billion to enhance its network and IT systems to boost network quality in the first half of 2023.

CEO of MTN Ghana, Selorm Adadevoh, in his comments contained in the report said “Enhancements to the network and IT systems were made possible through an investment of GHS2.2 billion in total capex. We grew our 4G coverage to 99.3% of the population and rolled out 156 2G, 159 3G and 156 4G sites in the first half of 2023. Capex growth of 97.4% Year-on-Year was driven by acquisition of spectrum licenses, accelerated infrastructure deployment as well as an increase in International Financial Reporting Standards (IFRS16) lease costs which was driven by inflation-induced escalations on tower lease agreements.”

MTN Ghana also paid the equivalent of 48% of its revenue in taxes, levies and payments to government agencies, comprising of GHS2.7 billion in direct and indirect taxes, as well as GHS228 million in fees, levies and other payments to government agencies.

The company is also creating shared value through social intervention programmes, making significant progress on some key projects.

According to the CEO, MTN Ghana remains committed to improving the lives of Ghanaians through appropriate and sustainable socioeconomic interventions and has made considerable progress in the construction of a 60-bed maternity and neonatal centre for the Keta Municipal Hospital and a STEM robotics lab for the Mamfe Girls’ School. It is expected that these projects will be completed in the second half of 2023 and handed over to the appropriate authorities.

Meanwhile, only last year, it cut sod for the construction of the US$25 million Ghana ICH Hub at the Accra Digital Centre in collaboration with the government of Ghana.