on review for a downgrade to reflect the uncertainty around the potential implications of the CBN and Nigerian attorney-general’s announcements on MTN’s credit profile.
Asief Mohamed, chief investment officer at Aeon Investment Management, said it was imperative that MTN sorted out its problems in Nigeria speedily.
“In the unlikely event that MTN is obliged to repatriate the dividends to Nigeria, it may put a strain on the MTN Groups financial position and its ability to service its South African debt,” Mohamed said.
MTN shares declined 2.93 percent on the JSE yesterday to close at R86.88.
‘BUSINESS CO-OPERATION VITAL’
AFRICA needs to mobilise large-scale, sustained investment, especially in infrastructure if it is to seize the opportunities of the future, but African governments cannot do this without business, President Cyril Ramaphosa said. “The private sector and private markets are key players in the African investment landscape, supported by the lending capacity of financial institutions. If we are to unlock and sustain the flow of capital to Africa, we need to drive the economic reforms necessary to create an enabling business environment,” Ramaphosa said. “To be globally competitive, to become investment destinations of choice, we need to resolve the problems that keep investors away. We have to address governance challenges such as policy uncertainty, financial mismanagement and corruption. As African leaders, we must demonstrate a firm commitment to act against corruption both within public institutions and the private sector. We must deal with burdensome red tape, provide policy and regulatory certainty, and strengthen our financial institutions.” Ramaphosa was delivering a keynote address at the Africa Investment Forum in Joburg. The forum is punting itself as an investment marketplace to raise capital to advance Africa’s economic transformation agenda.
NIGERIAN authorities said yesterday that MTN’s court challenges would be heard next month.