Ugandan Investment Fund Seeking Stake in Local MTN Operations

Uganda's National Social Security Fund (NSSF) is reported to be in talks with MTN's local mobile operations to take a stake in the company. The Business Power newspaper, citing unnamed sources said that the talks are pretty much at a very primary stage, but early indicators of a possible outcome appear positive.

Mr David Chandi Jamwa, the managing director of NSSF confirmed to the newspaper that they were in talks to buy shares in MTN Uganda, but declined to go into details. Much of the Fund's investment portfolio has traditionally been biased toward real estate and other fixed income assets - and this would be one of the largest investments the fund has made to date.

The NSSF is also understood to be insisting on an independent auditor to asses the value of the company prior to any deal being signed.

The NSSF has been mired in controversy recently, with allegations surrounding a recent purchase of land by the fund from a prominent government politician, Security Minister Amama Mbabazi.

According to figures from the Mobile World subscriber database, MTN Uganda ended Q1 '08 with just under 2.5 million subscribers, and a market share of 47.2%.

The National Social Security Fund (NSSF) began operations in 1986/7, and is a compulsory savings scheme that covers all employees in the private sector.

On the web: Business Power - The Mobile World

Posted to the site on 26th August 2008