MTN CEO: Why we are excited about the Rwanda listing

MTN Rwandacell PLC, Rwanda's largest telecommunications company, has achieved a significant milestone by officially listing on the Rwanda Stock Exchange, marking a pivotal moment for the country's emerging capital market. In a recent interview with CNBC Africa's Julius Bizimungu, MTN Group CEO Ralph Mupita discussed the implications of this listing for the group and the Rwandan market. Mupita highlighted the importance of creating depth in equity capital markets through listings, demonstrating MTN's commitment to supporting market development in Africa. The decision to list by introduction instead of an IPO was driven by local ventures like Crystal Telecoms, aiming to restructure the SPV vehicle and enhance MTN Rwanda's presence on the exchange without the need for capital raise. This approach signifies MTN's strong capital position and continued investment in network infrastructure, with an annual expenditure of $25 million to ensure a top-tier network. MTN's listing in Rwanda has already garnered substantial investor interest, with initial market capitalization reaching approximately 363 billion Rwandan francs. While current investors include Crystal Telecoms and MTN, the listing opens doors for Rwandan and international investors, enriching the equity capital market landscape in Rwanda. Mupita expressed optimism about the growth prospects for MTN Rwanda following the listing, particularly in the digital acceleration era post-COVID. With a focus on ICT services contributing significantly to economic growth, Mupita emphasized the potential for ICT to become a central driver of Rwanda's economy. Looking ahead, MTN Group's Ambition 2025 strategy aims to capitalize on digital acceleration across Africa, driving growth through infrastructure development and financial inclusion initiatives. While the company continues to prioritize connectivity, services like FinTech are gaining momentum, with Rwanda leading in FinTech evolution across MTN's portfolio. Mupita clarified MTN's stance as a telecommunications company exploring additional services like instant messaging, digital content, and enterprise solutions to complement connectivity offerings. As part of its African expansion strategy, MTN plans to further localize operations in markets like Uganda, following successful listings in Ghana, Nigeria, and Rwanda. Mupita also addressed efforts to standardize pricing and reduce the cost to communicate, enhancing affordability and expanding access to digital services across Africa. The conversation culminated in Mupita's insights on the African Continental Free Trade Area, highlighting the potential for digital infrastructure to facilitate intra-African trade and promote regulatory harmonization. Despite anticipated challenges, Mupita expressed confidence in leveraging private-public partnerships to drive economic growth and transform the digital economy in Africa.