MTN Rwanda’s acting CFO reveals a roadmap to strengthen the company’s financial position while tackling regulatory and macroeconomic pressures.
MTN Rwanda is pivoting its financial strategy to solidify its balance sheet, laying the groundwork for future investments, according to MTN Rwanda’s Acting Chief Financial Officer, Dunstan Ayodele Stober.
Speaking on the company’s fiscal outlook, Stober emphasized an approach rooted in optimizing internal resources and tackling regulatory uncertainties.
“We’re focusing on fixing the basics in our balance sheet,” Stober said in an exclusive interview with Thekfj.com, outlining plans to strengthen working capital and optimize its structure. “In the next couple of months, we aim to assess how much of our internally generated funds can be reinvested before tapping external markets or banks.”
MTN is currently servicing a $94 million license repayment facility, expected to clear within three years. While the CFO noted the company’s ability to meet its obligations, the pressure from Rwanda’s depreciating franc underscores the importance of local financing.
“The Rwandan franc’s 15 percent year-on-year depreciation has been a challenge,” he explained. “If we require additional funding, it will likely come from local financial institutions, where we’ve seen encouraging capacity for syndicated deals.”
MTN Rwanda’s Q3 results demonstrated resilience, with total revenue growing 14 percent year-on-year. However, declining voice revenue and data competition from Airtel remain concerns.
The company is leveraging advanced customer value management (CVM) campaigns and pricing strategies to recover. “Voice performance should improve with regulatory commitments to reinstate interconnect revenue, which we expect before year-end,” Stober said. “Our 6 percent growth in customer base this quarter and slight recovery in market share to 61.8 percent highlight progress.”
On data, MTN is focused on monetizing its significant 4G network investments. “We’ve expanded to over 1,100 4G sites and modernized our network. Now it’s about bringing passengers onto the bus,” he said, referencing efforts to boost data usage.
Mobile money remains a growth pillar, with MTN’s MoMo platform seeing a 29 percent year-on-year increase in Q3 revenue. The company plans to introduce advanced financial services and diversify offerings to reduce reliance on traditional revenue streams. “Bank tech and other payment solutions are areas where we see opportunities to drive growth and mitigate challenges,” the CFO added.
Regulatory challenges, particularly the zero mobile termination rate (MTR) policy, have impacted margins across the telecom sector. However, the company remains optimistic about forthcoming regulatory reviews. “We trust the regulator’s commitment to reintroduce MTR, supported by a consultant’s study that aligns with our expectations,” Stober stated.
Cost-containment initiatives are also critical to offset macroeconomic pressures. MTN is reducing dollarized expenses, modernizing networks to lower operational costs, and negotiating more local currency contracts. “Our modernization has improved service reliability and reduced site energy costs,” Stober said, citing these efforts as key to improving profitability.
While MTN reported a loss of Rwf11 billion in the first nine months of 2024, Q3 results signaled recovery, with a standalone profit of Rwf700 million in September. “We are on a positive trajectory,” Stober concluded. “With continued focus on commercial execution, data monetization, and cost optimization, we’re confident in restoring profitability and sustaining our market leadership.”
