As part of attaining the (NTO) National Telecom Operator License, telcos in Uganda are required to list their shares on the Uganda Securities Exchange. MTN Uganda to start listing shares soon as it is in the final stages of completing the process. It is working towards beating the deadline which is June 2022.
Also read: MTN MoMoPay brings new lines of business to your business
Speaking during the launch of a campaign dubbed Uganda is Home in Entebbe, Wakiso District last week, Mr Wim Vanhelleputte, the MTN Chief Executive Officer, said the company will list in a few months under a requirement by the government in which at least 20 per cent of the company shares will be sold to the public.
The ability of the public to buy shares in telecommunications companies will in one way regulate the competition since the public will have the means to influence the way the companies operate. This in turn could make the services more favourable and regulate competition in the sector.
According to Daily Monitor, analysts have predicted could be good news for the not so active stock market. The move is expected to earn the Capital Markets Authority a non-tax revenue of about UGX 1.1b.
Read also: Explained: How telecom companies operate in Uganda to provide better services
MTN is the first telecommunications company to make progress towards listing. Listing shares on the stock exchange is one of the requirements given to telcos when they receive the National Telecom Operator License. In Uganda, only 3 out of the 33 telecom companies have attained this license so far. Those are MTN, Airtel and most recently Lycamobile.
When will other telecom companies list shares?
The telecom giants are anticipated to list their shares on the stock exchange within two (2) years after receiving the license. This means the telecom behemoths still have time to list their stock.
Lycamobile, whose parent company Tangerine Limited has operated in Uganda since 2008, got the National Telecom Operator license on March 24, 2021. After getting the NTO license, the Lycamobile Uganda CEO Vinay Choudary said the company was now set to grow and expand. However, there haven’t been any mentioned plans to list on the stock exchange as yet.
Read also: Great news as Lycamobile gets National Operator License
Airtel acquired its NTO license in December last year. There has however been no mention of the telecom company going public in Uganda soon.
Read more: Airtel Uganda thrilled as it finally buys its new operating license