MTN Eswatini today presented its True Value Report which quantifies the value provided by the company in financial terms to its stakeholders and the country.
Worth noting is that the report is based on the 2021 financial year.
MTN Eswatini Chief Executive Officer Wandile Mtshali when making his remarks noted that the mobile telecommunications giant is highly focused on creating shared value for its stakeholders.
“MTN has a very clear, consistent definition of value as “progress in achieving our strategic intent and delivering on our purpose to enable the benefits of a modern connected life for everyone in our footprint”.
KPMG’s True Value methodology is based on the latest academic research, valuation methodologies, and leading industry practices.
It is aligned with various international standards including the Social and Human Capital Protocol, Natural Capital Protocol, and the Value Balancing Alliance.
KPMG’s Thomas Gouws when unpacking the report reiterated that higher profits do not necessarily translate to True Value.
“It is important to note that higher profit does not necessarily translate into higher True Value. Rather, the methodology provides a transparent, nuanced view of overall impact and value.”
Mtshali observed that MTN’s contribution to the country’s economy was through its financial contribution, job creation, social investments, and digital and financial inclusion products.
“The total economic value-add created amounted to approximately E535 million for 2021 which is made up of E528 million from opex for 2021 and SZL 7 million from capex for 2021). This contribution has a direct impact on Eswatini’s information and communications sector and an employment multiplier effect is experienced within the ICT sector and other sectors like wholesale and retail.”
“Our activities to boost inclusive economic growth through capital infrastructure investments, operating expenses, and tax also result in the creation of direct, indirect, and induced jobs across the ICT value chain.”
The company in the report first defined what it meant by inclusive connectivity.
“For us, inclusivity is about driving digital and financial inclusion, increasing access and reducing the costs of communication, ultimately connecting people not only to each other but also to business and educational opportunities.”
“Our efforts towards financial inclusion go beyond providing a transactional platform to a mobile platform that enables social inclusivity through MTN MoMo. MoMo is a foundation of our drive to bridge the financial exclusion gap and contribute to socio-economic goals and shared value.”
The report reveals that the total social contribution to the country’s economy stood at E763 million, while there were 490 indirect jobs created by the company and 260 direct jobs created, and the social value of jobs sat at E19 million.
The report by KPMG further reveals that Mobile Money (MTN Momo) had a financial value of E498 million in 2021.
Meanwhile, social value through new connections stood at E243 million in 2021.
Reducing Negative Environment Impacts
Regarding reducing the negative impact on the environment, the MTN CEO noted that they aim to reduce carbon emissions to zero by 2040.
“Our focus on the planet is aligned with the Paris Climate Agreement to limit global temperature rise to 1.5°C. We aim to reduce carbon emissions to Net Zero by 2040. Our operating companies are currently developing individualized initiatives to ensure the achievement of our drive to meet this target.”
“Our focus also includes ensuring responsible water discharge and minimal water use. However, the pressures are mounting on this essential resource in many parts of Africa and worldwide.”
The report reveals that emissions erosion amounted to E43 million in 2021, while water erosion amounted to E8 million in 2021.