MTN Reports R3b ln Loss in most Challenging Year in its History

Updated on 3 March 2017

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Today's top entrepreneurship and business stories (3 March)VC funding raised by African tech startups totals record breaking US$ 366.8 million in 2016
The VC funding raised by African tech startups in 2016 totalled US$ 366.8 million, compared to US$ 276.5 million in 2015, a +33% growth YoY. This is according to a report released by Partech Ventures, a leading international venture capital firm.

According to the report, the money was raised by 77 tech startups from 12 African countries Nigeria, South Africa, Kenya, Rwanda, Cote Ivoire, Tanzania, Egypt, Ghana, Senegal, Morocco, Tunisia, and finally Uganda.

“Looking at it from a stage-angle, the African tech investment keeps growing very fast with a distributed growth across all round types,” the report states.

Other highlights from the report:

  • Nigeria led the race in 2016 absorbing 30% of the total investment.
  • In terms of deals, South Africa saw the highest number of deals with 28 transactions (36.4% of total transaction), followed by Kenya with 21 deals (27.3% of total) and Nigeria with 13 deals (16.9% of total).
  • 3 sectors – Off-Grid Tech, FinTech & E/M/S-Commerce – attracted 72% of Africa’s VC investment in 2016.

Online & Mobile Consumer Services accounted for 40.5% (US$ 148.5 million across 36 transactions) of the total investments while Tech Adoption stood at 3.3% (US$ 12 million across 13 transactions).

The findings were based on market research, publicly available data and Partech’s trusted relationships within the technology ecosystem in Africa, and it’s quite incredible considering certain types of deals and startups weren’t considered.

Winner of the Global Student Entrepreneur Awards announced
The annual Global Student Entrepreneur Awards (GSEA) announced Amanda Jojo, owner of Amangie Parables of events, as its South African winner during an awards event which took place in Cape Town at the end of last week.

In its second year in South Africa, the Global Student Entrepreneur Awards is a Global Competition which seeks to find young people with an entrepreneurial spirit, and guide them in becoming the business leaders of tomorrow, providing them with a cash injection for their businesses, but also mentorship assistance on a global scale.

The winner received a cash prize of R1 000, 00 and secured her place in Germany, where she will compete against other shortlisted candidates from around the globe.

To enter the awards, contestants needed to illustrate they were successfully running a business for at least six months while studying and the business has an annual turnover of 500US$ (R65 000). Five other finalists from across South Africa participated.

  • Angela Shikwamba of MA holdings, a group that has over four companies in SA, one of which is MA holdings – an online company that offers university courses.
  • Imraan Kajee of FutureShop, an online application that compares prices and finds products for customers, with door-to-door delivery.
  • Bheki Mashaba, who runs Creatives United, a marketing company focused mainly on the entertainment industry.
  • Clinton Ngobe, owner of Uyitolotolo Holdings, an Enterprise Development Company. They assist small to medium size businesses with day to day problems, strategy design and implementation, consultations and business linkage facilitation.
  • Belarmino De Oliveira, owner of ODDJOBS, a job site that provides jobs that can be done and paid for within the hour, helping people in need of quick money and people that needs quick tasks done, with no long term commitments.

GSEA is part of The Entrepreneurs’ Organisation, an invitation only network with the goal of business or entrepreneurship knowledge sharing, and networking.

MTN reports R3bln loss in most challenging year in its history
MTN on Thursday reported a 110 percent decline in headline loss per share to 77 cents for the year ended 31 December 2016, down from headline earnings per share of 746 cents in the year before.

MTN reported a loss of R3.1 billion for 2016 down from a profit of R23.6 billion in 2015, partly due to a R10.5 billion Nigerian fine.

Group revenue was negatively impacted by the depreciation of the rand against the US dollar as well as lower-than-expected top-line growth in Nigeria and South Africa.

Revenue increased marginally to R146.8 billion while organic revenue increased 2.9 percent.

Though data revenue declined three percent, it continued to perform well increasing by 16.7 percent from 19.7 percent the previous year to R39.5 billion.

The South African mobile network service provider said 2016 had been the most challenging year in its 22-year history, precipitated by a number of material regulatory, macro-economic and political challenges experienced across the regions in which it operates.

Much of 2016 was consumed with putting in place corrective measures, especially the $1.1 billion Nigerian regulatory fine reduced from $5.2 billion, over unregistered SIM cards.

MTN said it continued to make progress with its preparations to list on the Nigerian Stock Exchange as part of a deal to reduce the regulatory fine.

MTN declared a final dividend of 450 cents per share. (via African News Agency)

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