It’s been 30 years since the first mobile phone was launched in Uganda.
The launch, in 1995, of Celtel as the first mobile telecommunications company rewrote Uganda’s telecom story in ways no one would have imagined.
It is a revolution that continues to evolve, and will be told for years.
But the attempt, three years later, by Mr Charles Mbire, the current MTN chairman, to convince South African telecom company, MTN Group, to invest in Uganda is a story of its own.
It shaped the industry that had for three years been monopolised by Celtel and declassed a sector that had closed out majority of Ugandans.
It also told of the potential that Uganda presented.
Mbire has previously told of a story in which MTN doubted the viability of Uganda as a telecom investment market.
Today, Uganda is one of the most profitable subsidiaries in the MTN Group cluster.
The titan that joined the party late
Whereas MTN launched three years later – in 1998 – after the first mobile phone was launched, it has over the years grown into a titan, controlling and dominating the telecommunications sector in so many aspects.
From the onset, MTN has maintained a large level of organic growth and set the pace in a sector that has seen some mergers, acquisitions and exits.
In fact, MTN, among the competing duo, remains the only telecom to have growth in subscriber numbers without any merger or acquisition.
Three decades later, MTN has not just participated; it has shaped one of the fastest-growing sectors of the economy and built a valuable asset that remains central to innovation.
From its modest launch in October 1998, MTN has systematically grown to become Uganda’s most valuable telecom company, a testament to astute strategic foresight, relentless network expansion, innovative service diversification, and a deep understanding of the Ugandan market.
Its journey is an infrequent case study of how a foreign multinational has deeply embed itself into a local economy.
The growth
MTN entered a market with a mere 0.27% mobile cellular penetration. Its immediate, decisive move was to aggressively roll out network infrastructure.
By adopting a wireless approach, it bypassed the limitations of existing fixed-line infrastructure, rapidly covering more than 90% of the urban population and extending into numerous towns and villages.
This relentless focus on coverage and accessibility, exemplified by initiatives like the “MTN VillagePhone” that empowered rural folks, quickly established MTN as the go-to network.
By August 2005, the VillagePhone initiative had reached 2,000 operators, further extending network access even in areas without electricity.
This early investment created an insurmountable lead. By 2005, just seven years after its inception, MTN had already amassed a million subscribers, demonstrating rapid growth in a competitive market.
By 2014, the number had swelled to 10 million, showcasing exponential growth.
Even as competition intensified, MTN consistently maintained a dominant market share, often hovering around 50-55% (holding 55% market share in June 2017 and 45.5% of the total 31 million subscribers in 2020), demonstrating its ability to both acquire and retain customers.
This pervasive network coverage became a foundational pillar for its future expansion.
And by 2018, when its initial license had expired, the telecom was sure it wanted to continue on a journey that had diversified in a big way.
The mobile money revolution
If there is one innovation that has changed the mobile telecommunication landscape, it is mobile money.
When the first mobile phone was launched in 1995, no one could have imagined that it would one day become a mobile wallet.
Initially, telecoms had relied on voice and short text messaging as the primary services. They had confined services to just a few items. They offered so little without exploiting the potential of the mobile phone.
Today, the mobile phone offers a great deal of diversification, with one of the most notable innovations being mobile money.
While voice services were the initial cash cow, MTN’s most transformative strategic decision was the early and aggressive embrace of mobile money.
And today, projections indicate a company in an aggressive expansion mood, and other services such as data.
Launched in 2009, MTN mobile money wasn’t just another service; it was a socio-economic revolution.
It provided financial access to millions of unbanked Ugandans, facilitating remittances, transfers, payments, savings, microloans, and insurance.
And today, MTN’s success in mobile money is reflected in staggering figures.
By 2014, MTN Mobile Money had 6.2 million registered users generating over 28.5 million transactions per month. Mobile money has since been segmented under the telecoms Fintech division.
Available data indicate that by 2024, MTN’s Fintech revenue surged by 22.8% to UGX 947.5 billion, supported by 13.8 million active Fintech customers (up 13.9%).
The sheer volume of transactions, reaching 4.3 billion in 2024 with a value of UGX 158.6 trillion, underscores mobile money’s profound impact on daily commerce and its critical role in MTN’s revenue diversification.
This foresight to pivot beyond core telecom services into financial technology proved to be a masterstroke, creating a powerful, interconnected ecosystem.
Today, the mobile money company – MTN Mobile Money – operates as a different company from the telecommunication company.
Data services
Beyond mobile money, MTN has built the future of the telecom sector – data and internet connectivity.
For the first 11 years, MTN had largely concentrated on voice services, but it later shifted its focus to internet connectivity, introducing the WiMax broadband service in 2005.
The internet, has since become an important facet in fostering
economic expansion, elevating productivity, and enhancing innovation.
In the early years into the launch of the mobile phone, the Internet had not been considered as an important part of the telecom sector.
But towards 2010, telecoms, particularly MTN, opened a new page and aggressively launched into the new future that would turn a corner at a time when voice was declining.
Well, voice remains the telecom sector’s cash cow – but is declining, which makes data and internet connectivity the future of telecommunications.
This has largely been supported by the rapid growth in mobile phone penetration, with data showing that almost 90% of Ugandans who use the internet access it through mobile gadgets.
About 13 years later, MTN has seen exponential growth in data usage, with subscriber numbers growing by an annual compound growth rate of 15%.
As of March 2025, MTN’s data users grew by 19.4% to 10.2 million, generating UGX 235.6 billion in the first quarter of 2025, which was a 32.5% increase compared to the same period last year.
Data remains MTN’s fastest-growing revenue stream compared to voice, which in the same period, grew by 1.5%, and Fintech, which increased by 9.8%.
Constant innovation
MTN continues to consistently evolve beyond its initial telecom roots to become a comprehensive digital solutions provider.
In 2005, MTN launched a Multimedia Messaging Service and mobile internet browsing, after the completion of its GPRS network implementation.
In December 2005, it introduced “MTN Loaded,” an interactive portal for multimedia content.
The telecom has, over the years, demonstrated consistent financial prowess, making it a magnet for investor confidence.
Going public
The telecom’s listing on the Uganda Securities Exchange in 2021 was a significant milestone, solidifying its position as the largest local listed company and markedly boosting its market capitalisation.
Letters to My Younger Self: Robinah Siima — “Success Is Quieter, But Richer”The move, whereas it was regulatory, placed the telecom in a position where it has been able to share its profits with Ugandans.
In the period ended December 2024, MTN returned a profit position which surged by 30.1% to UGX 641.5 billion.
The telecom also reported a 19.5% increase in total revenues to UGX 3.172 trillion.
The growth has largely been a result of wise investments in key areas of the company, such as network infrastructure.
In 2024, MTN increased its infrastructure investment from UGX 353.5 billion in 2023 to UGX 418.0 billion in 2024, which enhances service quality and capacity.
MTN also indicates that it has continued to invest in the network, spending UGX 45.8 billion in the first quarter of 2025, mainly on network upgrades and expansion.
Shareholder return
Moreover, MTN places a strong emphasis on shareholder returns through regular dividend payouts.
In 2024, the proposed dividend was UGX 8.5 per share, amounting to UGX 190.3 billion, following a dividend of UGX 403.0 billion in 2023.
This consistent performance enhances its attractiveness as an investment, with earnings per share (EPS) reported at UGX 8.1 in Q1 2025.
MTN also plays a crucial role in the national economy as a major taxpayer, contributing UGX 1.3 trillion in taxes in 2024 alone.
This significant contribution reinforces its positive image and strengthens its relationship with government.
Changing faces at the top
Since its inception, MTN has had about seven CEOs, with Mbire, who, as the pioneer chairman, has remained in the position for now 26 years.
The leadership at MTN is one of strategic continuity and resilience, characterized by a series of pivotal transitions that have ensured the company’s steady trajectory amid evolving market dynamics and regulatory challenges.
The longest-serving recent CEO, Wim Vanhelleputte, whose tenure began on July 25, 2016, brought a period of significant growth and network expansion.
His leadership, however, faced an unprecedented challenge in February 2019 when he was controversially deported from Uganda.
During this period, Gordian Kyomukama, then Chief Technology Officer, stepped into the role of acting CEO, ensuring operational stability and maintaining stakeholder confidence during a highly sensitive time.
Kyomukama’s steady hand was crucial in navigating the immediate aftermath of Vanhelleputte’s absence, demonstrating the company’s robust succession planning and internal talent.
Following successful negotiations and a resolution of the issues surrounding his departure, Wim Vanhelleputte returned and officially resumed his duties as CEO in June 2019, underscoring the MTN Group’s commitment to his leadership.
His subsequent departure in August 2022, when he moved to a regional role within the MTN Group, initiated another carefully managed transition.
Andrew Bugembe, the Chief Financial Officer at the time, seamlessly stepped in as acting CEO from August 1 to September 30, 2022.
Bugembe’s interim leadership maintained the company’s strong financial performance and strategic direction, setting the stage for the arrival of the new substantive leader.
The current CEO, Sylvia Mulinge, assumed office on October 1, 2022. Her appointment marked a significant milestone as the first-ever female CEO of MTN, bringing fresh perspectives and extensive experience from her previous roles within the telecommunications sector.
Under this succession of leaders, MTN has not only navigated complex regulatory landscapes, including the crucial negotiations for its new national telecommunications operator license in 2020, but also consistently maintained a strong focus on local relevance, driving digital and financial inclusion across the nation.
This deliberate and well-executed transition process at the helm has been instrumental in preserving MTN’s market leadership and strategic momentum.
Giving back
MTN’s success is profoundly linked to its significant commitment to corporate social investment, a dedication that has deeply strengthened its ties with Ugandans.
This commitment is formally channelled through the MTN Foundation, established in July 2007.
Since its inception, MTN has consistently allocated 1% of its annual profit after tax to the Foundation, ensuring a sustained and impactful contribution to national development.
The MTN Foundation’s mission focuses on driving measurable and sustainable change, particularly in disadvantaged communities, aiming to empower them for self-sufficiency.
Its core areas of focus are health, education, ICT, and youth empowerment.
In the health sector, the Foundation has significantly invested in maternal and newborn health, refurbishing and equipping over 50 maternity wards nationwide.
Funds from the annual MTN Kampala Marathon consistently support these vital health initiatives, alongside projects like providing vocational skills equipment to parents of children with autism.
In education and ICT, MTN is dedicated to bridging the digital divide.
The Foundation has equipped approximately 50 community learning centres with computers and the internet. Through partnerships, it has also invested in constructing and expanding 18 rural secondary schools, enhancing capacity and infrastructure.
The MTN Changemakers Initiative further allocates substantial funds (UGX 500 million annually in 2023 and 2024) to grassroots projects spanning economic empowerment, education, health, water, and environmental sustainability across Uganda.
Significant employer
Beyond financial contributions, MTN’s role as a significant employer is crucial.
The company directly employs 1,323 people as of 2024, making it one of Uganda’s largest private-sector employers.
Notably, 51% of its workforce is female, with women holding 38% of leadership roles.
This direct impact is greatly amplified by extensive indirect job creation.
Through over 212,500 Mobile Money agents and 86,000 MoMo Pay merchants, MTN supports hundreds of thousands of livelihoods.
In 2024, it also spent UGX 980.2 billion on local suppliers, including UGX 73.6 billion with women-owned businesses, further stimulating the local economy.
Dealing with crises
MTN has had its fair share of troubles and controversy in this challenging market but has adeptly navigated numerous crises over the years, employing a blend of direct engagement, legal strategies, and strategic public relations to protect its operations and market standing.
One major hurdle involved the expiry of its 20-year operating license in October 2018.
This triggered prolonged and contentious negotiations with government, forcing MTN to operate on temporary licenses.
MTN’s response involved extensive dialogue with officials, ultimately leading to an agreement in March 2020 to pay US$100 million for a 14-year license and commit to listing 20% of its shares on the Uganda Securities Exchange.
While this resolved the main issue, MTN later faced a legal battle over a $14.14 million transitional license fee, a case it ultimately lost.
The company also endured a significant crisis between 2018 and 2019 with the deportation of several executives, including then CEO Wim Vanhelleputte, on grounds of “national security.”
MTN Group swiftly intervened, engaging in high-level discussions with the government, which led to Vanhelleputte’s return in June 2019, showcasing MTN’s diplomatic prowess.
MTN has periodically contended with tax disputes with the Uganda Revenue Authority, such as a large audit claim in 2023, initially reported as high as $410 million, later reduced to $71 million.
MTN has consistently maintained tax compliance, engaging in constructive dialogue and providing extensive data to address these assessments.
Most recently, in April 2025, a court ordered MTN to pay over UGX 11.3 billion to VAS Garage for breach of contract and unfair competition related to Value Added Services.
MTN had denied the claims, but court ruled against it, emphasizing the importance of fair competition.
These incidents highlight MTN’s continuous effort to balance its business objectives with complex regulatory demands and market expectations in Uganda.
