Outgoing MTN CEO Rob Shuter reveals expansion plans for Africa, sheds light on Middle East exit

Telecommunications powerhouse, MTN Group, has announced a remarkable 120% increase in headline earnings and a 9% surge in group service revenue for the first half of the year. Despite these impressive numbers, the group has decided to exit its operations in the Middle East due to various challenges, including macroeconomic pressures and currency depreciation. In a recent CNBC Africa interview, outgoing CEO Rob Shuter shed light on the company's strategic plans for Africa and hinted at potential expansion opportunities. Shuter emphasized the importance of focusing on the pan-African strategy, with African markets contributing significantly to the group's financial performance. He acknowledged the complexities of operating in the Middle East and expressed confidence in MTN's decision to shift its focus to Africa. Shuter also highlighted the importance of Nigeria, MTN's largest market, in the company's medium-term plans. He discussed MTN Nigeria's substantial customer base and revenue contribution, underscoring the company's commitment to broadening local ownership. Additionally, Shuter addressed MTN's consolidation efforts, emphasizing the organic growth story and rationalization initiatives undertaken by the company. He discussed the exit from the Middle East and highlighted the focus on existing markets for growth and diversification. Shuter also mentioned the ongoing privatization process in Ethiopia as an exciting market opportunity for MTN. When questioned about MTN's asset disposal program, Shuter revealed plans to exit the company's investments in tower infrastructure, including a potential IPO by IHS. He explained that divesting from these assets would improve returns and reduce gearing for MTN. Looking ahead, Shuter discussed MTN's growth prospects, with a focus on digital and FinTech businesses alongside core connectivity services. He highlighted revenue streams from voice, mobile data, enterprise, wholesale, and digital services, outlining a compelling growth story for the company. Addressing the withholding of an interim dividend, Shuter attributed the decision to macroeconomic uncertainties and challenges in upstreaming cash from key markets. He expressed confidence in MTN's financial performance but emphasized the need to invest in networks and manage gearing amidst currency volatility. As Shuter prepares to step down as CEO, he shared that the board is nearing a decision on his successor, with an announcement expected within the next four to eight weeks. The search for the new CEO is underway, signaling a new chapter for MTN under fresh leadership.