Namibia: MTC pays N$5 billion dividends to shareholders

30 November 2018

Mergers, Acquisitions and Financial Results

MTC Namibia has paid over N$5 billion in dividends to its shareholders since inception in 1995.

This was announced by the company's board chairperson, Elvis Nashilongo, at a gala dinner on Monday at which MTC and Huawei were celebrating 10 years of partnership.

Nashilongo said the mobile communications company has always been of the view that there must be tangible value creation for shareholders, saying the company's performance in this area has been noteworthy with a generous dividends policy.

“In the first place, we wish to thank the shareholder in the form of the Namibian government for a supportive role,” he said.

He further added that in terms of MTC's contribution to the fiscus and national economic growth in general, the company had paid over N$3,1 billion in corporate taxes.

“Our operation as a business has a profound ripple effect [on] other industries. The company has so far spent about N$17 billion on various suppliers doing business with us while over N$268 million has been invested in sponsorships. We continue to do business with a sizeable number of suppliers and we believe that this relationship will have a perpetual and positive impact [on] national economic growth,” Neshilongo said.

He added that MTC recognises the existing gap in terms of a national policy framework to address inequities that continue to alienate ordinary people to partake in the mainstream of the economy.

“Our position on this matter is crystal clear and that is the advancement of Namibian businesses by giving them preferential treatment provided they demonstrate capacity and tenacity to perform in line with our brand expectation,” he added.

He said the partnership between MTC and Huawei is a smart partnership, highlighting significant achievements by the two companies in the information and communication technology (ICT) space, not only in Namibia but also in Africa.

“Between 2008 and 2009, MTC and Huawei jointly deployed the first 3G network in Namibia. A few years thereafter, MTC was the first to commercially launch the 4G technology in Africa. MTC was also the first to test the 4,5G technology in Africa,” Nashilongo added.

Speaking at the same event, senior vice president of Huawei southern Africa Luo Lei added that the partnership broke new ground with the delivery of comprehensive fibre internet and digital cloud computing services to support the government and public and private enterprises in Namibia to increase efficiency at an effective and lower cost.

“Namibia has been a front-runner in the adoption of ICT on this continent. Africa's first Dense Wavelength Division Multiplexing, a technology that increases bandwidth over existing fibre networks, was adopted in Namibia in 2011. Africa's first 4,5G network was also put on trial in this country.

“In 2017, partnering with Huawei, MTC embarked on the journey to provide 100% population coverage in the country. We are so grateful that with MTC, we have been able to participate and contribute to these national technological advancements, which not only enhance the social-economic development, but also connect Namibians with quality services and numerous possibilities,” the Huawei vice president said.

Delivering the keynote address at the gala dinner, president Hage Geingob commended the partnership between MTC and Huawei, saying it has played a major role in ensuring that Namibians have access to the latest mobile communication technology while ensuring that the country remains at par with global peers.

“While we encourage smart partnerships between Namibian businesses and foreign businesses, it is important that these partnerships and relations be mutually beneficial, and that Namibians benefit in the short and long term,” the president said.

Chinese ambassador to Namibia Zhang Yiming said Namibia is one of the countries with the most complete infrastructure in Africa.

“Namibia has also set an example for other countries with orderly governance. I am very pleased to see Huawei, one of the world's top 500 companies from China and a leading operator in Namibia work together to make Namibia at the forefront of the development of information and communications in Africa,” Yiming said.

Source: The Namibian