MTN Shareholders to Receive 147 Billion Shillings in Interim Dividends
MTN has announced an interim dividend payment of 6.6 shillings per share, totaling 147.8 billion shillings for the six-month period ending June 30, 2024. The dividend will be paid to shareholders on record as of September 2, 2024.
Sylvia Mulinge, CEO of MTN, stated that the company is well-positioned for future growth and maintains an agile operating model to ensure margin resilience. She highlighted that this dividend payment marks the eighth since MTN’s initial public offering (IPO) in 2021, bringing the total dividend payouts to over 1 trillion shillings since the IPO.
MTN’s half-year earnings report shows a major increase in total revenues, which surged 20.17% to 1.52 trillion shillings, up from 1.27 trillion shillings in the same period last year. This growth is attributed mainly to increases in voice and fintech revenues.
Profit after tax rose by 29.7% to 295.7 billion shillings, compared to 228 billion shillings during the previous year’s first half. Data revenue grew by 28.6% to 373 billion shillings, while voice revenue increased by 15% to 626 billion shillings. Fintech revenue, which includes mobile money and airtime advances, also saw a notable rise of 23.5% to 442 billion shillings.
The number of active fintech users grew by 26.8% to 8.8 million, and mobile subscribers increased by 14.6% to 20.7 million.
Currency Update: Uganda Shilling Remains Stable
The Uganda shilling remained stable during Monday’s trading session, opening the week at 3,718/3,728 and closing at 3,725/3,735. This stability was maintained despite varying levels of dollar demand throughout the day, which were counterbalanced by continued inflows from non-governmental organizations (NGOs) and commodity exporters.
Stephen Kaboyo, Managing Director at Alpha Capital, indicated that the shilling might continue its downward trend. However, he noted that if the exchange rate surpasses 3,750, it could lead to significant market fluctuations and disrupt the current sideways trading pattern. Kaboyo also mentioned that market participants are closely watching for policy updates, with expectations that the Bank of Uganda will likely keep the policy rate unchanged due to the current economic conditions.
In the money markets, liquidity was ample on Monday, with overnight yields averaging 9.59%, according to Absa. The Bank of Uganda managed excess liquidity through market operations.
On August 7, 2024, the Bank of Uganda is scheduled to auction 3-year, 10-year, and 20-year treasury bonds.
Experts Push for Financial Education Program in Uganda’s Rural Areas
In other financial news updates, Experts are advocating for the introduction of a financial literacy curriculum at the community level in Uganda to enhance financial awareness and education. This recommendation comes from a recent research report titled ‘Financial Awareness and Literacy Leadership (FAAL)’, which was presented on July 31, 2024, at the Country Gardens Hotel in Semuto.
The study focused on assessing financial literacy among rural women in Luweero District. It highlighted the need for a structured financial literacy curriculum to ensure consistent and comprehensive education in communities. The report was launched in the presence of various stakeholders, including Luweero District Deputy Mayor Prince Juuko Patrick, local council officials, savings and cooperatives organization leaders, and over 50 women from the area.
Prince Juuko Patrick expressed appreciation for the findings and encouraged the community to use the insights to improve their financial well-being. Participants discussed strategies to support women in achieving financial independence and enhancing their capacity to support their families and communities.
Dr. Hellen Namawejje, a lecturer at Makerere University’s Department of Statistical Methods and Actuarial Sciences, explained that the primary aim of the project was to evaluate financial awareness and literacy among rural women in Luweero. The study involved assessing financial literacy needs, providing training, and connecting women farmers with local associations in healthcare, insurance, agriculture, banking, financial services, and women’s groups.
The findings indicated that financial literacy training significantly improved participants’ ability to make informed decisions regarding budgeting, saving, spending, and investing, which is expected to enhance their living standards over time. The study emphasized that financial education should be accessible throughout life and noted the importance of business ownership and financial influence from family and school in improving financial literacy among rural women.
Additionally, the study found that membership in village savings and loan associations and Savings and Credit Cooperative Organizations (SACCOs) positively correlated with higher financial literacy levels. It recommended implementing ongoing training programs to sustain and build upon the skills acquired by women.
Namawejje also highlighted the need for community sensitization regarding government initiatives and their relevance to financial literacy and empowerment. She stressed the importance of family-level financial education, urging that women be encouraged to teach their families, especially children, about financial matters to cultivate good financial habits from an early age.
The study involved 150 women from Luweero District and was supported by the Carnegie Corporation of New York through the Future Africa Research Leadership Fellowship (FAR-LeaF) at the University of Pretoria, South Africa. Namawejje noted that despite substantial government investment to alleviate poverty, low financial literacy levels among the population, particularly women, continue to hinder the effectiveness of these initiatives.
