Safaricom describes Huawei issue as 'worrying'

Safaricom on
Huawei issue 

US ban will impact partners - Collymore.

Monday, May 27th

More countries South Sudan

Pressure mounts on MTN South Sudan

Pressure mounts on MTN South Sudan.

MTN's South Sudan operation is reportedly ready to lay off over half of its local staff compliment, a large portion of its foreign staff and is cancelling expansion projects.

A Reuters article published on 29 March quoted Khumbulani Dhlomo, Head of Corporate Services, as saying the company had reduced the foreign staff numbers by 75% and the intention is to lay off 55% of local staff.

Dhlomo told Reuters that subscriber numbers had decreased by 10% since October 2015, with more losses expected this year.

Reaffirming the reported figures, Dhlomo told ITWeb Africa that the company is indeed undergoing a restructure, brought about by what he described as "the dire economic situation in South Sudan".

"We are planning to downsize staff as a means of controlling costs and we have had to cut down on all expansion projects due to exchange rate movement which shifted from SSP2.96/1US Dollar to the current SSP42/1US Dollar. This has changed since they changed monetary policy from fixed currency to floating currency on 16 December 2015."

In terms of what this means for the company's domestic operations in the South Sudan region, Dhlomo said only that a number of initiatives have been put in place to make the business stable and profitable. "We are a business that is here for the long term but then obviously long term also depends on sustainability and shareholder return, amongst other factors," he added.

In January MTN South Sudan made headlines after allegations of compensation discrimination and a wage dispute between management and workers. Dhlomo denied the allegations and sources have since demanded negotiations with management.

According to MTN's annual financial 2015 results for the year ended 31 December 2015, presented on 3 March, Sudan was identified as among regions with ongoing challenges impacting the Group's growth.

The Group reported net Forex losses of R434-million due to the depreciation of the South Sudanese Pound by 509% against the US Dollar.

ALSO ON ITWEB AFRICA

SA companies 'slowly but surely' on digital transformation journey Published on 07 May 2019

Dell Digital Transformation Index ranks SA in ninth place in terms of local business maturity levels.

Consider the security implications for payroll when adopting cloud solutions Published on 23 May 2019

The recent launch of two multinational data centres in South Africa has placed renewed focus on the benefits that the cloud can provide businesses says Ian McAlister, General Manager of CRS Technologies South Africa.

Vodacom, MTN head-to-head subscriber race intensifies Published on 21 May 2019

As SA's two biggest mobile operators continue to attract customers, ITWeb drills into the rise and fall of their subscriber numbers over the past year.

Vodcom Lesotho confirms M-Pesa banking deal Published on 20 May 2019

Operator partners with Standard Lesotho Bank to enable real-time transfer of funds.