MTN Uganda pays Shs31.482 billion dividend to NSSF

MTN Uganda on Monday paid the National Social Security Fund a dividend of Shs31.482 billion.

In 2021 during the Initial Public Offering (IPO), NSSF bought 1.98 billion shares worth Shs360 billion in MTN Uganda making it the second largest shareholder in MTN Uganda with 8.84 shareholding.

The Chief Executive Officer of MTN Uganda, Ms Sylivia Mulinge said: “NSSF Uganda is a significant shareholder representing many Ugandans who have a stake in the fund and we are glad to return value to the fund members in line with our ambition 2025 key priorities of creating shared value for our stakeholders.”

In the financial year 2021/2022, MTN Uganda paid Shs9.32 billion to NSSF.

NSSF said this is the single largest dividend it has ever received out of its investments in equities. The fund is proud of its decision to buy shares in MTN Uganda.

The fund uses such investments to add more value to the fund’s members in terms of earnings.

“We are cognisant of the significant contribution of the NSSF to social security and we reiterate our commitment to ensuring that investment in MTN fulfils the investment objectives and goals for the fund,” Ms Mulinge said.

MTN Uganda has high margins which have contributed to attractive returns on invested capital.

Ms Mulinge said MTN Uganda has 20,870 shareholders with over 200 smaller pension funds and SACCOs.

MTN Uganda will pay out a dividend for 2022 at Shs5.5 per share totalling Shs123.1 billion by June 22 to all registered shareholders on their mobile money wallets and nominated bank accounts.

The telecom company is the NSSF’s largest equity investment at 14.6 percent to its total equities portfolio.  

Mr Patrick Ayota,  the NSSF Acting Managing Director said the investment fits well with the fund’s diversification strategy, a key component of the corporate strategy to grow the fund to Shs20 trillion by 2025.