MTN Increases Rwandan Investment

South Africa's MTN Group is set to acquire a further 9% in MTN RwandaCell through the privatisation of Rwanda's public fixed-line operator, RwandaTel. This acquisition of RwandaTel's 9% of MTN RwandaCell will increase the Group's shareholding in MTN RwandaCell to 40% and is expected to be finalised by the end of this month.

"This is a positive opportunity for the MTN Group as we expand our reach in the region. Before MTN arrived in Rwanda there were only 20,000 telephone lines in the country. At present MTN RwandaCell provides services to more than 114,000 subscribers and has achieved coverage in all 14 major urban areas," says Yvonne Muthien, group executive: corporate affairs, MTN Group.

Since MTN's arrival in Rwanda in 1998, teledensity in the country has increased to 1.3% from 0.4%. Average revenue per user in Rwanda is US$23 and brand recognition remains high with 98% spontaneous brand awareness. In terms of coverage, MTN RwandaCell met its licensing obligations in 2000, and is now focusing on further increasing teledensity throughout the country. The MTN Group's dedication to investing in the country is reflected in its commitment to building capacity and skills amongst Rwandan nationals, and to implementing a policy of 'localisation' in its recruitment and succession policies. Currently 98.5% of MTN RwandaCell's staff are Rwandan nationals.

"The MTN Group's investment in Rwanda stimulates economic and social development where its activities have a significant and positive impact on business and the local community," concludes Muthien."

Posted to the site on 8th September 2003