Extract from Portfolio Manager Commentaries – Sept 2022

MTN, the African mobile operator, has seen its share price almost halve in value since peaking at R210 in February of this year. This has occurred despite the business de-gearing its central balance sheet, extracting cash from the majority of its African operations and strengthening its presence in most markets with increased digital offerings. They have launched their mobile banking product in Nigeria (Africa’s most populous country) and are expected to announce a partnership later in the year with a major technology partner across all of their digital businesses. We expect the currencies of their major operating countries outside of South Africa to weaken over time, but including this the share still offers significant upside and organic growth as penetration rates for mobile and digital offerings remain low in the majority of these regions.

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