Telecommunications company, MTN, bolsters development across 16 African nations, contributing a significant R52.7 billion in taxes to respective governments.
In 2024, telecommunications giant MTN Group made a significant contribution of approximately R52.7 billion (£27.5 billion) in taxes to various revenue authorities across Africa. This tax contribution, which forms a crucial part of the company's operations, consists of corporate income tax, indirect taxes, operating licence fees, payroll taxes, property rates, dividend taxes, and withholding taxes.
The West and Central Africa (WECA) region accounted for a substantial 52.8% of MTN's total tax contribution, with Nigeria contributing 17.3%. The Southern and East Africa (SEA) region accounted for 17.1%, while South Africa, MTN's home country, contributed 10.2%. Major contributions to the tax contribution came from MTN's operations in Ghana (R11.7 billion), Nigeria (R9.1 billion), Uganda (R6.4 billion), and South Africa (R5.4 billion). The remaining amount was distributed across 12 other markets.
According to Tsholo Molefe, the Chief Financial Officer of MTN Group, this tax contribution goes beyond infrastructure potential and can be used for various public services such as employing healthcare and education professionals, supporting vulnerable populations, and supplying essential goods like medicines and learning materials.
The details of MTN's economic contributions were shared in its annual Tax Transparency Report. This report not only outlines the company's tax contributions but also provides insight into the evolving tax landscape across its operating regions. The report also discloses market-specific contributions and effective tax rates.
MTN's tax contributions are not just a means to secure its license to operate but also play a vital role in maintaining its reputation as a responsible, compliant corporate entity. By adhering to fair tax practices, MTN supports stable business environments, encouraging foreign investment, job creation, and broader economic growth in its host countries.
The Tax Transparency Report also emphasises MTN's commitment to transparency and accountability. It encourages stakeholders to review the full report for further insights into MTN's economic contributions and its role in accelerating Africa's digital future.
It is important to note that the specific breakdown of MTN Group's tax contribution in 2024, by market or region, is not provided in this article. For detailed financial information, it is recommended to check MTN Group's official publications or their investor relations website for the most accurate and up-to-date information.
- The tax contribution from MTN Group in 2024 was not only instrumental for its business operations but also beneficial for public services, potentially funding the employment of healthcare and education professionals.
- Besides infrastructure development, MTN's tax contributions in 2024 can be utilized to support vulnerable populations, providing essential goods such as medicines and learning materials.
- In addition to the critical revenue generated from telecoms, MTN's tax contributions in 2024 can be invested in finance and business sectors, fostering foreign investment, job creation, and broader economic growth across Africa.
