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MTN Faces R4.6Bn Repatriation Problem

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MTN faces the risk of not being able to repatriate about R4.6billion from Iran if US President Donald Trump persuades his allies in Europe to reimpose sanctions on the Middle Eastern nation, according to Business Day SA

 

MTN has been in discussions with Iran’s central bank to repatriate the remaining €300m in legacy cash that is stuck in that country, though those efforts could be scuppered if the US, UK and Europe pull out of the 2015 Iran nuclear deal. A decision is due to be announced on May 12.

 

If the US withdraws but does not convince the EU to do the same, MTN will still be able to repatriate Iranian funds by exchanging them for euros and then rands.

 

But a “worst-case scenario” would be for MTN’s Iranian business to be shut off from both European and US financial institutions as this would lock in MTN’s funding, MTN chief financial officer Ralph Mupita told investors on Thursday.

 

“But we think there will be something less than that negotiated in and around the twelfth [May 12],” Mupita said.

 

In April the Iranian government announced a single currency rate of 42,000 rials to the US dollar, an effective 11.4% decline in the central bank rate.

 

“Any transaction we do now would be at the 42,000 [rials] level and we did move some money last week at 42,000 [rials],” Mupita said. MTN Irancell moved €30m back to the group in the first quarter.

 

Mergence Investment Managers portfolio manager Peter Takaendesa said concern about Iran, which had already dented MTN’s share price, had been partly tempered by the fact that MTN would receive funds from the listings of its businesses in Ghana and Nigeria.

 

 

Sanctions on Iran would lift the oil price, which would be a boon for MTN’s largest business, its Nigerian operation, Takaendesa said.

 

Excelsia Capital analyst Mark Narramore said Iran “is probably the biggest foreign exchange risk across the group”.

 

If Irancell’s dividends were trapped in that country that could weigh on MTN’s dividends at a group level, though the dividend would be partly protected by a recovery in Nigeria, Narramore said.

 

It appeared as though “the worst is over in Nigeria”, where the local currency had stabilised with the oil price, he added.

 

Partly because of that, Narramore said: “MTN’s earnings growth profile is probably looking better than most of its emerging market telco peers”.

 

MTN said on Thursday its service revenue in Nigeria grew faster than inflation in the three months to March — the first time in a number of reporting periods. MTN Nigeria’s service revenues rose 14.4% compared with that of a year before, and margins also rose.

 

Group service revenue increased 9.1%.

 

MTN CEO Rob Shuter said the group had largely resolved a dispute with Benin.

 

MTN had agreed to pay frequency fees for 2016 and 2017 of $126m and extended its licence by five years. Further, a fibre-in-the-loop agreement had been added to MTN’s licence conditions. “I think that it is a decent resolution to a difficult situation,” Shuter said. (Business Day SA)

 

 


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Telecom Management Company Appeals for Cooperation and Safety Measures Over Abaranje Base Station Fire Incident

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Carville Integrated Ventures Limited, a telecoms facility management services provider, has expressed deep sadness by the recent fire incident at Abaranje Base Station, one of the several base stations it manages on behalf of Airtel Nigeria.

The incident, which occurred during maintenance operations on a leaking part of a diesel tank, resulted in injuries to some individuals from the local community who forcefully gained unauthorized access into the facility hosting the base station during the maintenance work.

Despite this breach of access control by the impacted individuals, Carville, who has responsibility for the site management expresses its sympathy to the victims and has offered to provide healthcare support to them.

The management of Carville Integrated Ventures, extends her condolences to the affected individuals and their families, stating, “Our hearts go out to those injured in the unfortunate incident. We are committed to providing support and assistance during their recovery process.”

Carville also emphasizes the company’s dedication to corporate social responsibility, stating, “We stand by our commitment to the communities we serve, and we will continue to prioritize their welfare in all our operations.”

Furthermore, Carville appeals to community leaders and members to cooperate with the company in implementing safety measures to prevent similar incidents in the future. “Safety is our top priority, the management affirmed. “We urge everyone to adhere to safety protocols and guidelines to ensure the well-being of all.”

Carville is working closely with local authorities and regulatory bodies to conduct a thorough investigation into the incident and implement necessary measures to prevent recurrence.


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Google, Kaduna State Others Partner to Launch First Hausa-Language AI learning Series to Expand Tech Education and Empower Women

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A new initiative aimed at empowering women in Northern Nigeria through AI education was launched today. Google, in collaboration with the Kaduna State Government, and Data Science Nigeria, introduced the AI for Beginners Learning Video Series. This series presents Artificial Intelligence concepts in Hausa, making complex technology more accessible and culturally relevant for the region.

In Northern Nigeria, various challenges can impact access to tech education and career opportunities. These include diverse socio-cultural dynamics, infrastructural limitations, and language barriers. The AI for Beginners Learning Video Series, through its engaging animations and culturally relevant imagery, is designed to make complex digital concepts more accessible and relatable, fostering inclusivity and participation in the growing tech sector.

The launch event, held at Umaru Musa Yar’Adua Hall in Kaduna, was a celebration of technology, education, and the immense potential of Northern Nigeria’s women. His Excellency, Governor Uba Sani of Kaduna State, graced the occasion as the Guest of Honor, delivering a keynote address that underscored the government’s commitment to digital transformation and economic growth.

“AI is not just the future; it’s the present,” Governor Uba Sani declared. “By equipping our people, especially our women, with AI skills, we’re not only paving the way for a more prosperous and innovative Northern Nigeria, but also laying the foundation for Kaduna to become a thriving tech hub.”

“We believe that technology can be a powerful force for change and are committed to making learning resources available in local languages to empower more people,” said the Director of Google West Africa during the launch event held at Umaru Musa Yar’Adua Hall, Murtala Muhammad Square, Kaduna. He added, “This series marks a new milestone in our ongoing efforts to enhance AI knowledge across Northern Nigeria, fostering a broader understanding and application of AI technologies that drive innovation and create new job opportunities.”

“By making AI education accessible in Hausa, we’re opportunities for innovation, entrepreneurship, and social impact,” added Dr. Bayo Adekanbi, CEO/Founder of Data Science Nigeria. “These women are the future leaders and innovators of Northern Nigeria, and AI is the tool that can amplify their potential.”

The event also featured speeches from representatives of NITDA and the Ministry of Communications, Innovation and Digital Economy, who underscored the national significance of the initiative and the government’s support for fostering a vibrant tech ecosystem.

The AI for Beginners Learning Video Series is now available on YouTube via the Data Science Nigeria platform, on the NITDA education portal, and for download. To further aid in accessibility, the series has also been deployed on USB drives for distribution and direct peer-to-peer copy at all primary and secondary schools, including public video content copying centres across Kaduna State.


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Binance Crypto Boss Changpeng Zhao Sentenced to 4 Months in Prison

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Changpeng Zhao, the former chief executive of Binance, was sentenced on Tuesday to four months in prison after pleading guilty to violating US money-laundering laws at the world’s largest cryptocurrency exchange.

The sentence was imposed by US District Judge Richard Jones in Seattle, who rejected prosecutors’ request that the 47-year-old Zhao serve a three-year term, twice the maximum recommended under federal guidelines.

Once considered the most powerful person in the crypto industry, Zhao, known as “CZ,” is be the second major crypto boss to be sentenced to prison.

In March, Sam Bankman-Fried received 25 years behind bars for stealing $8 billion from customers of his now-bankrupt FTX exchange.

Bankman-Fried is appealing his conviction and sentence.

Before handing down the sentence, Jones faulted Zhao for putting growth and profits before complying with US laws.

“You had the wherewithal, the finance capabilities, and the people power to make sure that every single regulation had to be complied with, and so you failed at that opportunity,” he said.

Wearing a navy blue suit and tie, Zhao did not react to sentencing.

Prosecutors said Binance employed a “Wild West” model that welcomed criminals, and did not report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al-Qaeda and Islamic State.

They also said Zhao’s exchange supported the sale of child sexual abuse materials and received a large portion of ransomware proceeds. Binance agreed to a $4.32 billion penalty.

“I’m sorry,” Zhao told the judge before the sentencing.

“I believe the first step of taking responsibility is to fully recognize the mistakes. Here I failed to implement an adequate anti-money laundering program … I realize now the seriousness of that mistake.”

Prosecutors had told the judge a tough sentence would send a clear signal to other would-be criminals.
Binance logo 3
Prosecutors said Binance employed a “Wild West” model that welcomed criminals, and did not report more than 100,000 suspicious transactions with designated terrorist groups including Hamas, al-Qaeda and Islamic State. REUTERS

“We are not suggesting that Mr. Zhao is Sam Bankman-Fried or that he is a monster,” prosecutor Kevin Mosley said. But Zhao’s conduct, he said, “wasn’t a mistake. This wasn’t a regulatory ‘oops.’”

Zhao stepped down as Binance’s chief in November, when he and the exchange he founded in 2017 admitted to evading money-laundering requirements under the Bank Secrecy Act.

Lawyers for Zhao requested probation, citing his acceptance of responsibility and paying a $50 million criminal fine.

They also said others who admitted to similar wrongdoing, including BitMEX founder Arthur Hayes, stayed out of prison.

Defense lawyer Mark Bartlett said Zhao “wanted to make a difference in the world,” but made mistakes.

Jones said a three-year sentence was inappropriate because prosecutors did not show that Zhao knew in advance about illegal activity.

“It’s always the case the government asks for more than they think they’ll get,” said Robert Frenchman, a lawyer specializing in white-collar crime. “Going that much above guidelines for a pleader is unusually aggressive.”

Several other crypto moguls are also in the crosshairs of US authorities after the collapse of crypto prices in 2022 exposed fraud and misconduct across the industry.

Zhao had been free on a $175 million bond, and agreed not to appeal any sentence within federal guidelines. Zhao also paid $50 million to the Commodity Futures Trading Commission.


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