Vodacom overtakes MTN as Africa's most valuable telco

quist 12:02 - 15 May 2016

South African Telco, MTN

This was revealed on Thursday after Vodafone’s market capitalisation hit $16.4 billion beating MTN whose capitalisation was recorded to be $15.8 billion.

MTN has been overtaken by rival Vodacom as Africa’s most valuable telecommunications company.

MTN’s shares are said to have dropped by 32% since October, 2015, owing to massive fine of $5.2 billion was slapped on the company’s Nigerian business for failing to heed to SIM registration laws of the Nigerian Communications Commission.

This year will be the first time after 2009, that Vodacom’s value surpasses that of MTN’s on the continent.

Telecom experts say, 2015 was always going to be a difficult year for the South African Telecoms giant, the fine notwithstanding, with MTN downgrading its revenue expectations from the Nigerian business for 2015.