Last week’s shake-up of MTN’s executive leadership has become a source of amusement to the watchers of Africa’s largest telecom group. Even with MTN’s strategic rationale set out in full, the share price reaction hints that confidence wasn’t instant.
The group announced changes to its executive committee and technology function as well as the SA operations. Some executives fell off the group’s executive committee.
Ferdi Moolman, an MTN veteran, is the biggest beneficiary. Having served stints outside the country, including in Nigeria, he returns to SA to become MTN SA CEO, replacing Charles Molapisi. The latter will now run the group’s technology function.
The market was unequivocal in its response. The share price took a knock. .
Typically, results sessions are an opportunity for a public company to tell its story of what happened and to give a glimpse of its prospects. MTN took this opportunity. It didn’t merely announce the changes. Which is a tactic. It linked the changes to the strategy; explained the core problem it was seeking to solve through these huge changes.
The company, created at the dawn of democracy, has done considerably well for its shareholders, especially in about the first decade. Lack of credible competition ensured that the duopoly of MTN and Vodacom hogged the SA market.
But MTN has not been without its challenges. When SA became too small for it, it spread its tentacles to other markets, including treacherous ones such as Nigeria and Iran. In Nigeria it suffered a double blow. First, it was fined heavily for failing to disconnect unverified subscribers and, lately, it claimed the currency moves affected its profitability.
In Iran, it faced legal woes when it was challenged by the loser, Turkcell, over winning the stake in Irancell. Western sanctions have made that investment a dud. And the company has now disclosed that it is cooperating with US authorities investigating its operations in war-torn Afghanistan.
After years of these geopolitical wrangles, it appointed an advisory panel including former president Thabo Mbeki. This is not a statutory corporate governance board. The corporate governance board is chaired by former politician and businessman Mcebisi Jonas. .
The market was unequivocal in its response. The share price took a knock
What is clear, however, is that the changes last week cannot be linked to historical decisions such as those about Nigeria, Iran and/or Afghanistan.
MTN has done a service to itself, its investors and customers by clearly explaining the changes properly to its stakeholders. Even so, it hasn't obviated the speculation doing the rounds about the motive and rationale of the changes.
Some investors and analysts have speculated that group CEO Ralph Mupita is a “cleaning house” after last year’s board-appointed investigation — launched after an anonymous complaint — which ultimately found no wrongdoing.
About a month later, the board gave him a new contract, signalling a vote of confidence in him until 2030.
Conspiracy theorists are hard at work creating spurious links from the information gaps.
Listed companies operate on the basis of laws, regulations, and norms and standards. Information dissemination is highly regulated. What, how and when certain information is shared with stakeholders is important.
The leadership changes are not immediate.
Correction: August 29 2025
This editorial, first published on August 29, has been revised as the original piece overlooked the organising principle behind the overall changes. We are also incorporating the MTN’s right of reply statement. We regret the error.
MTN RIGHT OF REPLY
MTN Group’s response to Business Day editorial on leadership changes
MTN Group notes the recent Business Day editorial commentary. It is incorrect to suggest that the leadership changes announced alongside interim results on August 18 2025 were not explained to stakeholders.
As communicated in the Sens announcement of August 18, the rationale was clear: the changes follow a review of the strategy by the group’s board of directors and are intended to strengthen strategy execution and delivery over the next three to five years as we look beyond 2025, supporting MTN’s work to accelerate Africa’s digital future.
The fact that the group decided, in addition to the first-half results announcement, to publish a separate Sens announcement entitled “Group strategic review and operating model changes to support execution/Change in the role of a director/Changes to the board of MTN South Africa” underscores the seriousness with which MTN took this comprehensive disclosure.
In addition to the Sens announcement, these changes were explained in the group’s interim results presentation; during investor and media calls, meetings and interviews; and directly to employees through numerous internal engagements — like the Open Session held with staff on August 18 and in communications across other internal platforms. They were also unpacked directly with members of our executive committee, including at a three-day off-site gathering.
Stakeholders were provided with links to the premiere episode of MTN’s Y’ello Chair podcast, which was produced in collaboration with Business Day. This was also made available on our www.mtn.com landing page.
We continue to engage with shareholders in our first-half results roadshow, the first leg of which our leadership has just completed in SA. During these meetings, our executives engaged with major shareholders. The next stage of the roadshow takes our leadership to investors in the UK and US.
Across all channels, the message has been consistent: these leadership transitions are deliberate, strategic, and aligned with the group’s medium-term objectives. A key quote from MTN Group president and CEO Ralph Mupita during the results presentation sums it up: “I think the key feature is that the same team that has been executing is still the same team that we’ve appointed to take the strategy forward. Some people have been moved around in terms of different roles, but the aim is still to create value as we look three to five years out.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.