MTN moves into Zambia, Ivory Coast

Johannesburg, 22 Jun 2005

Mobile operator MTN will boost its presence in Africa to eight countries, following its announcement that it will acquire majority stakes in operations in Zambia and the Ivory Coast.

According to a statement released by the cellular company, it has signed an agreement to acquire a 51% stake in Loteny Telecom, which trades under the name Telecel Cote d`Ivoire, and is one of two operators in the West African nation.

MTN claims that the deal to obtain the majority stake in the operation, which has over 800 000 subscribers and an estimated market share of 46%, remains subject to certain minor conditions, but regulatory approval has already been received.

"The Ivory Coast is the commercial hub of Francophone West Africa and is the home of the regional stock exchange for eight Francophone countries," says Yvonne Muthien, group executive for corporate affairs at MTN.

"The country boasts one of the largest ports in sub-Saharan Africa and an outstanding infrastructure with a network of over 16 000km of paved roads, making the Ivory Coast an attractive investment opportunity for us."

She says the country has recorded one of the highest growth rates for GSM services in Africa over the last five years and growth potential still remains high, given the current mobile penetration rate of approximately 11%.

The company has also entered into an agreement to purchase Telecel Zambia, which is one of three operators in the southern African nation, with an estimated market share of around 21% - or 360 000 subscribers - in a country that has 3% penetration to date.

Launched in 1997, Telecel Zambia is the second largest operator in the country and offers MTN the potential for large growth in the region, providing the operator receives regulatory and competition approval for the acquisition from the relevant Zambian authorities.

"Both Telecel Cote d`Ivoire and Telecel Zambia are established operations and we are confident they will achieve growth and maintain market share, benefiting significantly from MTN`s strong brand and innovative product and service offerings," says MTN Group CEO, Phuthuma Nhleko.

"These acquisitions will further entrench our footprint in West and southern Africa, where we already have operations in Nigeria, Cameroon, SA and Swaziland, and a successful conclusion to both agreements will increase our African operations to eight - including MTN Rwanda and MTN Uganda - and should help us grow our total subscriber base to over 16 million."