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Stakeholders with whom we partner to create value

MTN's strategic intent is leading digital solutions for Africa's progress. In pursuit of this, we recognise the critical role of all our stakeholders. Our commitment to effective stakeholder management empowers us to navigate challenges, seize opportunities, and foster a sustainable business model that benefits not only MTN but also our broader stakeholder community. In our market context, we unpack the context in which we operate.

As a responsible corporate citizen, MTN acknowledges our role in society. We operate as a juristic entity with rights, but equally important, we bear responsibilities and obligations toward the communities we serve.

Our deliberate efforts extend beyond shareholders and commercially incentivised stakeholders. Through structured engagement, research and analysis, we assess the impact of our business activities on sustainable socioeconomic development within each country.

In line with this commitment, we revamped our Group stakeholder and reputation management framework in 2023. This comprehensive framework includes our stakeholder and reputation management strategy, stakeholder management policy, and a practical playbook for implementation across our footprint. As part of this process, we engaged with all stakeholder categories across our markets, and beyond, with a view to:

What we did in 2023

We assess how well we are doing on each of the above areas through several research interventions, including the Reputation Index Survey (RIS), which surveyed over 5 300 stakeholders across 14 markets.

The 2023 RIS showed a consistent three-year average of 80% in overall reputation, exceeding our corporate targets and outperforming industry / competitor benchmarks. This sentiment is confirmed by a participant in the MTN Media Dipstick Audit Report of February 2024 wherein the participant comments: "I think MTN does a pretty good job". This is also confirmed by the Quarter 4 MTN Group Brand Health Trust Survey which sees our customers ranking MTN as "Number 1 in key markets including SA and Nigeria" which has also shown year-on-year growth.

The results from the MTN RIS feed into organisational KPIs signed off by the Board, and feature in Board reporting and reporting to stakeholders. Therefore the four percentage point (pp) year-on-year decline in the Quality of Engagement indicators from 76 to 72% is our major concern as stakeholders have raised concerns, particularly related to control mutuality and perceptions that we do not overtly display long-term commitments in some of our markets. Although the 72 score is above the general acceptable moderate to good score of 65 – 70, it is below the corporate target of 75, therefore the next edition of stakeholder engagements plans and our refined stakeholder management strategy will pay greater attention to balancing relations as well as predictable commitments, particularly in the corporate social responsibility space.

“So far we are doing very well in the relationship we have established with MTN. I do, however, have a feeling that more engagements and consultations need to be embraced towards taking the final decision about programmes at hand. Straight talk breaks no friendships. Thank you.” –
Government stakeholder, Eswatini

Nonetheless, stakeholders expressed a steady year‑on‑year and above target 77.7 in the levels of trust in the MTN brand. This is slightly above the 76 for technology companies according to the 2024 edition of the Edelman Trust Barometer. It is significantly higher than the 68 ascribed to telecommunications companies, thus sealing our position as an innovative technology company.

The high level of trust in the MTN brand is also confirmed by the MTN Brand Health Trust Survey, which has seen the efforts to grow trust resulting in positive uplift with people trusting MTN over competitor brands. The survey sees MTN improving its association score relative to competitors in 10 of 15 markets. Consequently, our brand has either extended its lead over its main competitor or narrowed the gap.

“MTN is a very innovative company. I love the outlook of the app.” –
Ghana customer.

Stakeholders also expressed confidence in their relationship health with an above-target score of 77.5, which is also above the in general relationship health of between 65 and 70 which is deemed as adequate to good. Although we have significant reserves of relationship capital, we have lost ground with suppliers, the investment community, regulators and policymakers and civil society. Thus, going forward, engagement strategies will pay particular attention to these categories of stakeholders with an added emphasis on some markets. Additionally, we shall pay particular attention to stakeholder perceptions of how well we perform on material issues that they have identified as being the most important to them.

“Achieving revenue growth while managing costs remains critically important. Telcos are capital intensive and therefore it is important to balance capex against operating cash flow. Ideally we want to see further de‑risking of the balance sheet and paydown of dollar debt. Continued rationalisation of the portfolio and monetisation of assets is also key to the Group’s value unlock strategy.” –
An MTN investor.

In taking a tier 1 and regional view, given the impact of geopolitics, economic slowdown, relative instability as well as policy and regulatory ambiguity, it is not surprising that the WECA region registered a marginal reputational decrease. The tier 1 markets (Nigeria and South Africa) both registered a reputational improvement, despite the global and local challenges confronted by the markets. The SEA markets experienced a stable year-on-year reputational score, despite some changes in the national executives and regulators in markets such as Zambia and South Sudan.

Doing for tomorrow, today is not something we can do on our own. We rely on the support and collaboration of diverse stakeholders across our markets to create value through delivery of our strategy and the SDGs. The MTN Group reputation and stakeholder management framework is our mechanism to ensure that we are proactive, inclusive and principles-driven in how we relate with our stakeholders.

Doing builds strong relationships

The objectives of our stakeholder engagement inform the KPIs which we use to evaluate the impact of our efforts. They help us assess whether we are complying with the MTN Group stakeholder management policy and making progress in delivering on Ambition 2025.

To measure our performance, we rely on stakeholder feedback in our everyday engagements, as well as on our Reputation Index Survey – which directly surveys stakeholders and incorporates this information with data collected through ongoing NPS tracking (for subscribers and customers) and the Sentimeter survey (for MTNers – our employees).

In 2023, this yielded a combined dataset of 5 394 stakeholder contributions (up from 5 290 in 2022) – making this the most well‑attended Reputation Index Survey yet. We used the services of a reputable independent survey provider to carry out the research.

Survey results

G6: Partnership with the GSMA in Africa

The third edition of the Mobile World Congress Africa was hosted by the GSMA in October 2023 in Kigali, Rwanda.

It occurred at a time of growing geopolitical polarisation and conflicts on the continent. Although African economies have been challenged by foreign currency availability, inflation and high debt, there was some cautious optimism with the African Development Bank (AfDB) projecting 4.1% growth for 2023/24 against a 2.6% global growth outlook.

From an ICT sector perspective, the Congress noted the lack of digital literacy and access to technology had exacerbated existing disparities in education, healthcare, agriculture and economic development, thus perpetuating poverty and inequality.

Technology and innovation are critical ingredients to help Africa develop. The CEOs of six of Africa's largest MNOs and Smart Africa convened to consider opportunities and challenges for deeper partnerships with African governments to drive digital and financial inclusion.

The CEOs presented a communique to HE Paul Kagame, the President of the Republic of Rwanda, as a champion for AU reforms and Smart Africa. The CEOs called on African leaders and policymakers to partner on digital development with the mobile industry by reimagining existing structures and developing targeted new policies that accelerate the positive and inclusive impacts of mobile technologies to close the investment and usage gaps.

The three-pronged advocacy strategy and common platform focuses on:

Tax rationalisation for the mobile industry through the development of targeted fiscal policy reforms that support economic growth and digital development, deepening digital and financial inclusion and aligned with national targets. (For example, removal of tax on low-cost smartphones and sector-specific tax).

Regulatory support to implement the recommendations of the UN Broadband Commission's '21st Century Financing Models for Bridging Broadband Connectivity Gaps' to promote investment models for digital infrastructure, which include all digital economy beneficiaries.

Climate action policies to improve access to renewable electricity for corporate buyers are essential for the mobile industry to achieve its climate targets.

What matters most to them	How we are doing	Summary of issues	Our response	How we engage
Product and customer experience	75%	Of great concern for government stakeholders is the perceived limited reach and slow speed of the MTN network especially in rural areas in markets such as Nigeria, South Africa and South Sudan. Because MTN is the market leader or second, government stakeholders perceive MTN to be contributing positively in the economies and job creation in host nation's socioeconomic development challenges. However, there is a push for a greater quantum of investments particularly in CSI which is required to be better alignment with national priorities, projects and priority geographic locations. Government stakeholders have the perception that MTN is performing well in their markets, however it is these perceptions that have led to the unintended consequence of the unfounded perceptions that MTN pays far less taxes than it should be paying. Although government stakeholders trust MTN to do what is right, they remain concerned of their perception that MTN does not always do what it says it will do and it has not spent sufficient efforts in co-creating the agenda with government. Government stakeholders also raised concern around customer protection in relation to the fintech business.	MTN is actively pursuing the coverage, reliability and minimisation of network down time through investments to improve the infrastructure. Further local and international partnerships are being mobilised to maximise the socioeconomic impact, to complement the current contributions to host nations in particular as it relates to socioeconomic challenges, growth, development and job creation. MTN is also engaging governments in host nations, which efforts are being complemented by ongoing industry-wide advocacy through the GSMA as it pertains to fairshare contributions and tax. These form part of the common platform of action of the G6, a GSMA convened platform of Africa's leading MNOs. Active engagement with the governments as the fintech business is refined to be more responsive to government concerns.	Undertake regular courtesy calls by leadership across our markets. Participate in numerous public forums. Actively participate and shape the advocacy efforts of the GSMA, so as to get policy and regulatory predictability and harmonisation.
Impact on socioeconomic development	80%
Business performance and financial results	83%
Survey Results

What matters most to them	How we are doing	Summary of issues	Our response	How we engage
Business performance and financial results	80%	Similar to government stakeholders, regulators and policymakers are concerned about MTN's quality of engagement and have a moderate perception that MTN could do more in supporting the socioeconomic challenges confronting the host nations. Although MTN is largely seen to be complying with legislation and regulations in host nations, there is a minority perception that MTN could be more responsive and supportive of priority projects and programmes identified by regulators and legislators.	We have refined our stakeholder engagement plans to better align and collaborate with regulators and policymakers, with a view of partnering on priority programmes and projects. Considerations are underway of reconfiguring and realigning the MTN Foundations for impactful models as well as improved governance and accountability. We leverage global and in-country industry associations.	Undertake periodic consultations and courtesy calls across our markets and with continental multilaterals as well as industry platforms. Participate in policy and public forums and industry associations to improve the quality of engagement and to advocate for a transformed sector.
Impact on socioeconomic development	75%
Compliance with legislation and regulations	79%
Survey Results

What matters most to them	How we are doing	Summary of issues	Our response	How we engage
Impact on socioeconomic development	79%	Similar to government, civil society believes that MTN could have better reach especially in rural areas. Although MTN's socioeconomic contributions are acknowledged by civil society stakeholders there is a belief that MTN can and should invest more, as there is a belief that MTN performs very well and makes profits in the markets. Civil society is also concerned that MTN does not co-create programmes or projects with them, with the perception that we come with an already preconceived agenda and programmes. This stakeholder group is also concerned that human rights are upheld.	We are actively addressing the coverage and reliability of our network through investments directed at continuously improving the network. Regionalised consultations with civil society are being periodically convened so as to better align with the expectations of civil society and communities. We respect and promote physical and digital human rights within our organisation and throughout the value chain, contributing to positive social impact.	Undertake periodic consultations and roadshows with civil society and communities. Participate in civil society and community forums and programmes, while also complementing this with ad hoc community visits. Website updates on community investments, roadshows and the Y'ello Care Programme.
Product and customer experience	71%
Business performance and financial results	82%
Survey Results

What matters most to them	How we are doing	Summary of issues	Our response	How we engage
Business performance and financial results	73%	The financial resilience of the Group and our ability to navigate volatility in our operating environments across our markets is a key area of interest for the investment community. Our ability to execute on *Ambition 2025* targets – with a particular focus on the fintech and fibre businesses – is a key catalyst for our investors. Of concern, with regard to performance, is the perceived risk in some African markets, but investors acknowledge that despite these instabilities we remain resilient.	Consistent and transparent communication on financial performance, initiatives are in place to mitigate against the prevailing global macroeconomic uncertainty and timeously updating the investment community on corporate actions. These actions resulted in MTN receiving a Merit award in the Top 40 category at the 2023 CGISA/JSE Integrated Reporting Awards and maintaining an 'Excellent' rating at the EY Excellence in Integrated Reporting 2023 awards for the second year in a row. Lastly, The 2022 Integrated Report was also recognised by the International Finance Corporation (IFC) as a leading example of good international practices in the field of integrated reporting. MTN was ranked in the top five in the 2023 Intellidex Investor Relations Survey. Capital market days in 2023, hosted by the MTN Group and MTN Nigeria, where we unpacked the progress made on our strategy, detailed our prospects and our plans for the MTN of tomorrow. Our annual governance roadshow gave investors the opportunity to engage with the Group Chairman, lead independent director and social, ethics and sustainability committee Chairman on remuneration, governance, ESG, strategy and risk. Improved and deepened stakeholder intelligence is being undertaken so as to better handle the perceived risks and instabilities in some African markets. Accelerated engagements are planned for our investor community to better align expectations and realities.	Meetings, webcasts, roadshows, conferences. Interim and annual results presentations, quarterly trading updates and capital market days. Annual governance roadshow. SENS announcements, our investor relations mailbox and investor website page. Perception audits and dipstick surveys. Integrated annual report.
Calibre of leadership team	82%
Compliance with legislation and regulations	84%
Survey Results

What matters most to them	How we are doing	Summary of issues	Our response	How we engage
Product and customer Experience	73%	Similar to government, regulators and policymakers and civil society, subscribers and customers have the perception that the reach and quality of the network could be better, scoring the product and customer experience below the corporate target of 75. Subscribers and customers would also like to see a more proactive engagement, visibility and direct communication with them, beyond marketing campaigns. Subscribers and customers highly rate our performance and contributions to society.	We are actively addressing the coverage and reliability of our network through investments directed at continuously improving the network. We are also accelerating direct interface and engagements with our subscribers and customers, updating our systems and applications for greater billing transparency.	On-the-ground engagement by our Y'ello experience agents in communities across our markets. Ongoing interaction via various digital channels and on social media to make it easier for our customers to engage with us. In-market campaigns and trade activities. Increasing use of our pro-customer framework, with the tagline: "We listen. We care. We do."
Business performance and financial results	82%
Impact on socioeconomic development	80%
Survey Results

MTN Group Limited
Integrated Report for the year ended 31 December 2023

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Stakeholders with whom we partner to create value

Government

Regulators and policymakers

Civil society

Investment community

Subscribers/customers

MTNers

G6: Partnership with the GSMA in Africa