There is no doubt businesses have underestimated or wilfully looked past the impact their scale and operations can have on the environments in which they operate and the communities they serve. Business has an important role to play in engendering change that matters, change that drives positive impact. The recent MTN True Value report shows the immense power of our company’s activity in action, where every second of every day — when someone interacts with an MTN product or service — the value we provide goes far further and much deeper than a number on an annual report.
The results of the report, compiled independently by KPMG, show MTN is making extensive headway in helping to address unemployment, poverty and inequality in South Africa, and reflect how we apply our values to ensure we contribute to a larger social ecosystem.
This is the true essence of impact and value creation, and reflects the soul of our business. It shows we are not just another telecom company, but are obsessed with having a broader, lasting and sustainable impact on the communities we serve and the people who rely on us every day to stay in tune, in touch and connected to opportunity. It highlights how our strategic-impact partnerships with government, civil society, NGOs and organisations provide a firm foundation for lasting success.
The fact that MTN SA’s True Value created is 17 times the profit generated in 2021 is the headline grabber. But if you dig deeper, you get to the heart of what value creation means — when people begin to truly benefit, society advances and progress is made in addressing challenges on the ground. It is extremely pleasing to see that MTN SA created 146,486 direct, indirect and induced jobs across the ICT value chain and other sector jobs in 2021, with the social value of these at R1.bn.
There is little doubt that many of the country’s challenges will be overcome if we close gaps that prevent people from entering the formal economy. The transition to a digital and connected world holds the key to unlocking opportunities and overcoming hurdles to growth. In this regard, MTN SA’s mobile money (MoMo) added R230m in value for new customers. This will grow further as we continue to harness the benefits of the modern digital economy to connect the unconnected and facilitate new, safe and fast avenues in which to transact, invest and save.
I believe our recent results lay a path for other South African corporates to follow. They place a greater focus on the difference we can make, as it is only through a collective effort that the country's ills can be overcome. All corporates must work harder to fix social and economic problems if we are to see South Africa's people prosper. Our nation thrives on unity and collaboration, which fuels change. But this change must involve a collective effort. I would like to witness the corporate realm transition beyond a focus on profits. It's my hope that companies initiate more detailed reporting, placing equivalent importance on showcasing the number of lives they've positively influenced. Furthermore, it would be beneficial if they communicated to investors the quantity of employment opportunities they've generated, even calculating expenditure to facilitate job creation in underserved regions or areas neglected due to limited corporate engagement. Envisioning this transformation, I propose the establishment of a “social impact index” becoming a prerequisite for businesses to address before delving into discussions about their profits.
A key outcome of this report is the sheer extent of the reach of a business such as MTN, where one single internet connection and access to data leads to further health and business services, and other opportunities in society and the economy. This is why the number of indirect jobs is particularly important — the impact a business has is far bigger and more important than traditional economic reporting measures reflect. For instance, MTN has directly employed 6,234, but created 140,252 indirect and induced jobs.
Our endeavours have a multidimensional impact, fostering inclusive growth and job creation. Our business activities, which include capital infrastructure investments, operating expenses and tax revenue contribution to the country, play a significant role in bolstering GDP and have been pivotal in driving economic growth.
At MTN, we have embarked on a journey that echoes our core values and strategic priorities. This report reflects those. This is just the start — a broader collective effort in driving true value will propel South Africa towards accelerated growth and create a more prosperous future for its people.
Molapisi is MTN SA CEO
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