MTN, one of Uganda’s leading telecom companies, has made a significant dividend payment of Shs31.48 billion to the National Social Security Fund (NSSF) for its investment in the company. This dividend payment is the largest ever received by NSSF from its equity investments.
In 2021, during MTN’s Initial Public Offering, NSSF purchased 1.98 billion shares worth Shs360 billion, becoming the second largest shareholder in MTN.
Mr. Patrick Ayota, the acting managing director of NSSF, expressed his confidence in the investment, citing MTN’s strong performance track record and market leadership as contributing factors.
MTN’s high margins have resulted in attractive returns on invested capital, making it NSSF’s largest equity investment, accounting for 14.6 percent of its total equity portfolio. This investment aligns with NSSF’s diversification strategy, a key element of its corporate strategy to grow the fund to Shs20 trillion by 2025.
NSSF’s chief investment officer, Mr. Gerald Paul Kasaato, mentioned that the fund’s total equity investment stands at Shs2 trillion across approximately 30 companies. However, NSSF manages assets worth more than Shs17.8 trillion, including fixed income, equities, and real estate within East Africa.
Ms. Sylvia Mulinge, the CEO of MTN, emphasized the importance of returning value to NSSF’s members, as the fund represents numerous Ugandans who hold a stake in it.
MTN currently has over 20,870 shareholders, including smaller pension funds and Saccos, which collectively represent millions of Ugandans.
Earlier this month, MTN announced a dividend payout of Shs5.5 per share, totaling Shs123.1 billion for the period ending December 2022. This is in addition to two interim dividends paid out in September and December of the previous year, amounting to Shs232.8 billion.
Ms. Mulinge reaffirmed MTN’s commitment to ensuring that the investment in the company aligns with NSSF’s investment objectives and goals, recognizing the significant contribution of NSSF to social security in Uganda.