Close Menu
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact

Subscribe to Updates

Get the latest technology news from TechFinancials News about FinTech, Tech, Business, Telecoms and Connected Life.

What's Hot

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

2025-07-16

iPhone 17 Pro May Return To Aluminum Alloy Body

2025-07-16

LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs

2025-07-16
Facebook X (Twitter) Instagram
Trending
  • Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector
Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp RSS
TechFinancials
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact
TechFinancials
Home»Boardroom Games»Know your business rivals: Why MTN is recruiting bankers as executives
Boardroom Games

Know your business rivals: Why MTN is recruiting bankers as executives

Gugu LourieBy Gugu Lourie2016-07-07Updated:2019-08-13No Comments6 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

Under its durable chairman MTN has quietly wormed its way back into the hearts of critics. Now the South African-based mobile phone behemoth cannot be ignored. By Gugu Lourie

A few months ago, Phuthuma Nhleko came back to the helm of the troubled firm as an executive chairman with only one goal – to sort out the Nigeria fine debacle which culminated in the departure of then MTN CEO Sifiso Dabengwa.

Dabengwa resigned when MTN was slapped with a $5.2 billion fine by the Nigerian authorities for failing to register subscribers.

MTN’s biggest investor, state-owned fund manager the Public Investment Corporation (PIC), also questioned the role of the board led by Nhleko in events that led to the massive fine.

Nhleko stood firm amid murmurs of criticism over the protracted delay by the Nigerian authorities in finalising the size of the fine.

Phuthuma Nhleko
Phuthuma Nhleko, MTN’s executive chairman

Furthermore, pressure for radical leadership changes seem to have hastened as MTN’s market value dropped. MTN lost its position as a biggest listed mobile phone operator to rival Vodacom.

Yet now the position seems to have drastically changed. MTN has agreed a settlement fee of $1.2 billion (330 billion naira) with the Nigerian authorities and has begun paying the fine.

Nhleko has rejigged the company’s board to bring in fresh blood. He will also stand down as chairman in two and a half years.

MTN shares have risen 7.52% in the past 30 days, giving it a R257 billion market cap versus Vodacom’s R242 billion market value.

Nhleko has also replaced top leadership and enticed former Vodafone Europe head Rob Shuter to be the CEO of the cellphone giant. He has also secured the services of Steve van Coller as MTN’s vice president of strategy and mergers and acquisitions. Van Coller is the current CEO: Corporate and Investment Banking at Barclays Africa and is a banker of note. Shuter is also an astute ex-banker after working for both Standard Bank and Nedbank.

These appointments signal a strategic shift for MTN.

Rob Shuter, incoming CEO of MTN Group
Rob Shuter, incoming CEO of MTN Group

They point to a move to tackle fintech head-on. Fintech, also known as Financial technology, is an economic industry composed of firms that use technology to make financial services more efficient.

It is likely that MTN could aggressively pursue the fintech strategy by acquiring start-ups, which are also on the radar screens of the banking firms. To exemplify, Rainfin – a Cape Town-based P2P (peer-to-peer) platform which is the largest in South Africa and focuses on SMEs – is lending more than one million rand per day and is backed by Barclays.

South Africa’s popular Snapscan – a cashless, cardless payment app – is backed by Standard Bank.

The mushrooming of new and successful fintech companies on the African continent can be directly linked to innovations that meet the needs of historically under-serviced market – the unbanked.

A move to provide a new suite of banking alternatives would enable MTN to ignite its network with financial content and justified its investment in expensive infrastructure networks.

Both van Coller, the incoming-chief boss of strategy and M&A, and big boss, in-waiting ,

Steve van Coller
Steve van Coller, MTN’s vice president of strategy and mergers and acquisitions

Shuter could emulate Nhleko’s previous success record of making MTN the biggest mobile operator in Africa and Middle East after he snapped up strategic assets and invested in so-called risky markets such as Iran and Nigeria.

A deal to buy Barclays Africa assets would also make sense

Both have a great opportunity to help MTN conquer the fintech market with their vast banking skills.

They could pull a coup if are prepared to be shrewd dealmakers.

Imagine, MTN led by Shuter and Van Coller, making a bold bid to buy Barclays Africa assets.

It might seem far-fetched and ridiculous – but an MTN bank with operations in 14 African countries including Nigeria, Ghana and Egypt would shake up both the cellular and financial services industries.

If this were to happen, MTN would be miles ahead of its new rivals – the banks.

Such a move would be regarded as a direct challenge to Africa’s financial services sector. Such a bold step will help MTN recoup the more than R80 billion in market value that vanished when it was fined by Nigeria in December 2015.

However, there is nothing new in the convergence of banking and cellular solutions. The cellphone is already functioning as a virtual bank.

MTN has been playing a big role in ensuring that those excluded from the banking sector across the African continent have access to cash or credit equivalents.

MTN operates in one of the largest areas of unbanked and under-banked people in the world, making a bid for Barclays Africa a compelling opportunity.

MTN’s mobile money solution enables 34 million people across its Africa operations to perform money transfers, make utility payments, pay for bus and public transport services, purchase airtime, buy micro insurance, pay school fees and television subscriptions, make bank deposits, pay for fuel, etc.

MTN’s mobile money service proves the mobile phone operator is capable of providing financial content to its customers.

If such a deal was to be made, Barclays Africa assets owned by MTN would fast-track the mobile phone operator’s fintech strategy. It would be a perfect fit given MTN’s ecommerce commitments.

It would also enable MTN to move beyond commodity voice services and differentiate its

MTN Nigeria
MTN Nigeria has been hit with a giant fine for failing to comply with the country’s regulations. Reuters/George Esiri

products, which could assist it to attract and retain more customers.

MTN could then compete for millennial customers with the banks. The assets of Barclays Africa would help enhance trust among fintech startups that partner with MTN.

MTN has proven itself in the past on integrating bigger assets. In 2006, MTN spent $5.5 billion (R81.2 billion) to buy Dubai-listed Investcom in a deal that helped the South African-based telco to be the biggest mobile operator in Africa and the Middle East.

So will MTN ever consider buying Barclays Africa assets or any other bank in the continent?

We will only find out when Shuter and van Coller have settled at MTN.

An alternative would be for MTN to build its own fintech solutions, however, this would be very costly, besides the trend is for fintech startups to partner with banks rather than telcos.

Shuter and van Coller and the entire new management team at MTN could also surprise the market with other innovative moves to reinvigorate the mobile operator.

But if both of them use their banking experience to challenge the financial services sector through fintech strategy – maybe MTN will once again be the biggest mobile phone operator in Africa and Middle East.

If that happens the Nigerian debacle could be the dropped call that gave the mobile phone company time to recharge.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Gugu Lourie

Related Posts

Fuse Lit: SA’s U.S. Tech Bomb ‘Nears Detonation’

2025-07-16

US Denies Mcebisi Jonas’ Visa, Rejects Credentials As Ramaphosa’s Envoy

2025-07-15

Takealot Expands Pickup Points At Pick n Pay For Shopper Convenience

2025-07-14

DA Urges President: Fire Minister Nkabane Now – Open Letter

2025-06-25

NHI Scheme Is State Capture 2.0 Disguised As Health-Care Reform

2025-06-22

SA Crypto Rule Update May Add R540M To Tax Revenue

2025-06-17

Satellite Internet Won’t Solve South Africa’s Connectivity Crisis

2025-06-16

Middle East & Africa Lead In Baggage Handling – SITA 2024 Report

2025-06-12

Alexforbes Delivers Strong Financial Performance, Celebrates 90 Years Of Industry Impact

2025-06-09

No Comments

  1. Henry Okoede on 2016-07-07 10:23

    Gugu Lourie – Well-done!
    You will surely make an excellent futurist !

    Reply
  2. Pingback: Is MTN Recruiting Bankers Because It Wants To Buy Barclays Africa? - AFKInsider » All About Lagos

  3. Pingback: How is MTN’s move into financial services industry gathering strength - TechFinancials

  4. Pingback: Can SA’s MTN be “Ignited” to Find its Winning Streak Again?

Leave A Reply Cancel Reply

DON'T MISS
Breaking News

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

Despite facing ongoing challenges, South Africa’s supply chain sector is experiencing growth fuelled by a…

LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs

2025-07-16

How Agri-Tech Is Powering South Africa’s Cannabis Boom

2025-07-15

Ithuba Challenges Lottery Licence Award

2025-07-14
Stay In Touch
  • Facebook
  • Twitter
  • YouTube
  • LinkedIn
OUR PICKS

Fuse Lit: SA’s U.S. Tech Bomb ‘Nears Detonation’

2025-07-16

US Denies Mcebisi Jonas’ Visa, Rejects Credentials As Ramaphosa’s Envoy

2025-07-15

Takealot Expands Pickup Points At Pick n Pay For Shopper Convenience

2025-07-14

DA Urges President: Fire Minister Nkabane Now – Open Letter

2025-06-25

Subscribe to Updates

Get the latest tech news from TechFinancials about telecoms, fintech and connected life.

About Us

TechFinancials delivers in-depth analysis of tech, digital revolution, fintech, e-commerce, digital banking and breaking tech news.

Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp Reddit RSS
Our Picks

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

2025-07-16

iPhone 17 Pro May Return To Aluminum Alloy Body

2025-07-16

LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs

2025-07-16
Recent Posts
  • Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector
  • iPhone 17 Pro May Return To Aluminum Alloy Body
  • LEPAS Debuts In South Africa 2026 To Redefine Premium SUVs
  • Fuse Lit: SA’s U.S. Tech Bomb ‘Nears Detonation’
  • Gwede Mantashe Named Acting Minister Of Police
TechFinancials
RSS Facebook X (Twitter) LinkedIn YouTube WhatsApp
  • Homepage
  • Newsletter
  • Contact
  • Advertise
  • Privacy Policy
  • About
© 2025 TechFinancials. Designed by TFS Media.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.