Uganda threatens MTN to make company public

The Local unit of South Africa’s MTN Group Limited has been given an ultimatum to either list its shares on the local bourse or risk non-renewal of license.

Reuters News quoted Godfrey Mutabazi, head of telecoms sector regulator Uganda Communications Commission (UCC) who said Ugandans should be able to own a stake in the firm which has operated in the country for 20 years.

“We are evaluating the conditions of (license) renewal and that’s one of the points we are discussing,” he said referring to listing shares on the local Uganda Stock Exchange (USE).

When asked specifically whether a local listing was being stated as a condition for renewing MTN’s license, he said “that’s right.”

“They have not shown any resentment to that proposal at all,” Mutabazi added.

MTN Nigeria is planning to list its shares on the Nigerian Stock Exchange, NSE, after it was negotiated into a deal to cut down a hefty regulatory fine to N330 billion.