Pan African telco, MTN Group, has agreed to pay around $100 million in taxes as part of a move to place at least 20 per cent of its shares on the Uganda Securities Exchange, according to a report in the Ugandan Press.
MTN Group has been in negotiations with the Ugandan government and the latest development will help to safeguard MTN’s ling term future in Uganda.
“It is true that MTN agreed to pay the $100 million in return for a licence for 14 years. As government, we had wanted to give them 10 years but they explained that they have to invest in infrastructure upgrades and that their investment plan will see them injecting an extra $260 million over the period so we agreed on 14 years,” a report in The East African news site, quoted state minister for ICT, Peter Ogwang, as saying on Friday.
MTN Uganda will make payment of the amount in two payments of $50 million, which will provide a significant cash boost to the Ugandan authorities.
MTN Group is the largest telco in Africa, claiming more than 233 million subscribers in 21 consumer markets across the continent. The company also provides enterprise services to businesses in 23 African nations.