Mcebisi Jonas joining MTN seen as a corporate coup

JOHANNESBURG - Africa's biggest cellular provider MTN yesterday recorded a major corporate coup, unveiling former Deputy Finance Minister Mcebisi Jonas as a director just weeks after he was appointed as one of President Cyril Ramaphosa's investment envoys.

The company announced Jonas's appointment to the board of directors alongside Swazi Tshabalala, as it continued to restructure its leadership team and to restore its credibility in the market.

Momentum Securities analyst Sibonginkosi Nyanga described Jonas and Tshabalala's appointments as a master stroke, as both were held in high regard in the market.

Nyanga said MTN needed credible leaders to take the company forward, following its recent fall-outs with authorities in countries such as Nigeria.

He said Nigeria was an important market for MTN as the group controlled 57percent of the market share there.

“MTN is doing well, because they are working on their network. They are number one in Nigeria in terms of their Net Promoter Score,” said Nyanga. “It's one of the biggest networks in that jurisdiction.”

In 2016 Nigerian Authorities fined MTN $1.7billion (R21.23bn) for failing to disconnect more than 5million unregistered SIM cards in Africa's most populous country.

MTN briefly lost its position as the continent's most valuable telecommunications

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