MTN downscales in South Sudan

MTN has noted that it has faced losses in their South Sudan unit. The South Africa-based multinational mobile telecommunications company, operating in 17 African countries had its officials in the East African country note that “We have made losses since we started operating in 2011” – This was a statement by MTN Sudan‘s head of corporate affairs, Khumbulani Dhlomo. In an optimistic light, he added that “We have scaled down the staff and I think the organisation will function now.”

MTN_SS_Per_Sec

An MTN advert in South Sudan

Due to the situation which has been attributed to an economic crisis caused by civil war, leading to the collapse of South Sudan’s currency and surging inflation, MTN South Sudan has cut 54 jobs and made changes to the way it sells airtime to help it survive. These changes include asking local traders to purchase airtime from MTN via bank transfers and sell to customers electronically, eliminating the need to import, and then distribute scratchcards.

“We are trying to manage what we have and make sure we continue operating,” the company’s chief executive officer, Philip Besiimire, said “We have now positioned ourselves to be lean and efficient until the situation changes.”

MTN South Sudan boasts of over eight million subscribers.

According to Oxfam, South Sudan is currently facing an acute humanitarian crisis and emergency levels of food insecurity due to an on-going conflict; more than 2.3 million people have been forced to flee their homes due to brutal war. Out of these, 1.6 million have been internally displaced in South Sudan and more than 777,000 have sought safety in neighbouring countries, mainly Ethiopia, Kenya, Sudan and Uganda. All this has led to a spiral into an economic free-fall.

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