Photo Gallery Of The New Mercedes-Maybach S-Class

In 2021, the new 223-series Mercedes-Maybach S-Class will be delivered to the first customers – exactly 100 years after the first Maybach automobile presented...

Latest Posts

University of Pretoria Launches Africa-First Engineering 4.0 Facility

The University of Pretoria (UP) officially opened its state-of-the-art Engineering 4.0 facility, which focuses on research on smart transport, cities and infrastructure. Situated on the...

Huawei Pay Launches in South Africa

Huawei Pay, a payments system for Huawei smartphone users, will be launched in South Africa later this week. In partnership with local payments company Zapper,...

Top Trends That Will Drive Success For SMEs In The Future

By Christiaan Engelbrecht  Forming the backbone of the economy, SMEs serve as a critical engine of economic growth, generating employment and fostering innovation. In South...

FlySafair Is Tapping Into Tech For a Fuss-Free Customer Experience

What’s the one thing that people carry with them all the time? If you said a phone, you’d be correct. Whether it’s checking a...

MTN moves ahead with its plans for e-commerce

By Gugu Lourie

MTN has a bold plan to tap into the digital space in Africa and Middle East by diversifying revenue streams away from voice to suit its customers’ modern digital lifestyles.

However, MTN – Africa and Middle-East’s biggest mobile phone operator – is not likely to challenge Naspers – the multinational group of e-commerce platforms that owns stakes in China’s Tencent, India’s Flipkart and Russia’s Mail.ru.

But MTN might encroach on Naspers’ territory and pose a threat to other smaller players in the e-commerce and e-tailing industry.

That said, MTN obviously sees opportunities to tap into the digital space.

Like its rivals Vodacom, Millicom, Airtel Africa and Vodafone, MTN is seeking to redefine its role in the digital era as voice telephony revenues continue to dwindle.

It is focusing on providing digital lifestyle services such digital banks (mobile money), digital entertainment (video-on-demand), and my web: delivering services such as online shopping and locate services.
MTN is investing heavily in developing online ventures so that it can take advantage of opportunities in the digital space.

In that regard, MTN and Rocket Internet (Rocket) have formed a joint venture, Middle East Internet Holdings (MEIH), to develop internet businesses in the Middle East. MTN and Rocket are equal partners with a 50% shareholding each. MTN invested €120m in the joint venture.

MTN also has bought 33,3% stake of Africa Internet Holding (AIH) – a joint venture between Rocket Internet and Millicom International Cellular – for €168m. The aim is to develop online ventures across the fast-growing internet markets of Africa.

MTN Group CEO Sifiso Dabengwa says the rollout of digital services supported by Rocket partnership continues to be important.

Dabengwa says the mobile operator aims to leverage its brand, customer base, distribution network and payment solutions (mobile money) in the markets where both AIH and MTN are present to deliver a range of internet services including e-commerce retailing, as well as market place, taxi, travel, classified and food delivery services.
During its results presentation, MTN said the continued rollout of its mobile money and broader financial services remains a priority with the widening of its distribution platform.

The introduction of new products and services including micro lending, international remittances, retail payments and insurance will also be a priority.

“We continue to develop our digital offering through focusing on local content and working with other suppliers. Through our partnership with Rocket we now have a platform that facilitates easier rollout,” says Dabengwa.

MTN’s partnership with Rocket provides it with a strong base for future growth. In 2014 AIH launched 44 new operations across 23 markets in Africa while MEIH has 11 operations in various countries in the Middle East.
Furthermore, MTN’s strategy may benefit from how the mobile phone is transforming all the sectors of the economy in Africa and the Middle East.

This development may assist MTN in diversifying its revenue stream and create new customer base.

MTN, which is valued at more than R410bn, has enough cash to make e-commerce a new playground that has possibilities of creating shareholder value in the absence of big ticket acquisitions.

Latest Posts

University of Pretoria Launches Africa-First Engineering 4.0 Facility

The University of Pretoria (UP) officially opened its state-of-the-art Engineering 4.0 facility, which focuses on research on smart transport, cities and infrastructure. Situated on the...

Huawei Pay Launches in South Africa

Huawei Pay, a payments system for Huawei smartphone users, will be launched in South Africa later this week. In partnership with local payments company Zapper,...

Top Trends That Will Drive Success For SMEs In The Future

By Christiaan Engelbrecht  Forming the backbone of the economy, SMEs serve as a critical engine of economic growth, generating employment and fostering innovation. In South...

FlySafair Is Tapping Into Tech For a Fuss-Free Customer Experience

What’s the one thing that people carry with them all the time? If you said a phone, you’d be correct. Whether it’s checking a...

Don't Miss

Amazing Hacks and Tips To Simplify A New Musician’s Life

Starting out a music career seems like a great prospect as it gives you all the money, fame, and success that you’ve always dreamt...

SA’s Crypto Exchanges, Brokers Must Register as Financial Services Providers

South Africa’s financial regulators have published a draft declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services Act...

SA’s FinTech Firm Ukheshe To Buy 100% of Oltio From Mastercard

Ukheshe, South Africa’s digital banking platform provider, announced on Friday it has agreed to buy 100% of Oltio from Mastercard for an undisclosed amount. Oltio...

Telkom Launches Cancellation and Retention Call Centre

Telkom today announces the launch of a cancellation and retention call centre to streamline customer service process. The inbound Interactive Voice Response (IVR) call centre...

Vodacom Is Using AI To Enhance The Customer Experience

Vodacom's partnership with Alipay, the world’s leading digital lifestyle services platform, will bring inclusive mobile solutions to consumers and merchants in South Africa through...
[tdn_block_newsletter_subscribe title_text=”Stay in touch” description=”VG8gYmUgdXBkYXRlZCB3aXRoIGFsbCB0aGUgbGF0ZXN0IG5ld3MsIG9mZmVycyBhbmQgc3BlY2lhbCBhbm5vdW5jZW1lbnRzLg==” input_placeholder=”Email address” tds_newsletter2-image=”5″ tds_newsletter2-image_bg_color=”#c3ecff” tds_newsletter3-input_bar_display=”row” tds_newsletter4-image=”6″ tds_newsletter4-image_bg_color=”#fffbcf” tds_newsletter4-btn_bg_color=”#f3b700″ tds_newsletter4-check_accent=”#f3b700″ tds_newsletter5-tdicon=”tdc-font-fa tdc-font-fa-envelope-o” tds_newsletter5-btn_bg_color=”#000000″ tds_newsletter5-btn_bg_color_hover=”#4db2ec” tds_newsletter5-check_accent=”#000000″ tds_newsletter6-input_bar_display=”row” tds_newsletter6-btn_bg_color=”#da1414″ tds_newsletter6-check_accent=”#da1414″ tds_newsletter7-image=”7″ tds_newsletter7-btn_bg_color=”#1c69ad” tds_newsletter7-check_accent=”#1c69ad” tds_newsletter7-f_title_font_size=”20″ tds_newsletter7-f_title_font_line_height=”28px” tds_newsletter8-input_bar_display=”row” tds_newsletter8-btn_bg_color=”#00649e” tds_newsletter8-btn_bg_color_hover=”#21709e” tds_newsletter8-check_accent=”#00649e” embedded_form_code=”JTNDIS0tJTIwQmVnaW4lMjBNYWlsQ2hpbXAlMjBTaWdudXAlMjBGb3JtJTIwLS0lM0UlMEElMEElM0Nmb3JtJTIwYWN0aW9uJTNEJTIyaHR0cHMlM0ElMkYlMkZ0YWdkaXYudXMxNi5saXN0LW1hbmFnZS5jb20lMkZzdWJzY3JpYmUlMkZwb3N0JTNGdSUzRDZlYmQzMWU5NGNjYzVhZGRkYmZhZGFhNTUlMjZhbXAlM0JpZCUzRGVkODQwMzZmNGMlMjIlMjBtZXRob2QlM0QlMjJwb3N0JTIyJTIwaWQlM0QlMjJtYy1lbWJlZGRlZC1zdWJzY3JpYmUtZm9ybSUyMiUyMG5hbWUlM0QlMjJtYy1lbWJlZGRlZC1zdWJzY3JpYmUtZm9ybSUyMiUyMGNsYXNzJTNEJTIydmFsaWRhdGUlMjIlMjB0YXJnZXQlM0QlMjJfYmxhbmslMjIlMjBub3ZhbGlkYXRlJTNFJTNDJTJGZm9ybSUzRSUwQSUwQSUzQyEtLUVuZCUyMG1jX2VtYmVkX3NpZ251cC0tJTNF” descr_space=”eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjE1In0=” tds_newsletter=”tds_newsletter3″ tds_newsletter3-all_border_width=”0″ btn_text=”Sign up” tds_newsletter3-btn_bg_color=”#ea1717″ tds_newsletter3-btn_bg_color_hover=”#000000″ tds_newsletter3-btn_border_size=”0″ tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjAiLCJiYWNrZ3JvdW5kLWNvbG9yIjoiI2E3ZTBlNSIsImRpc3BsYXkiOiIifSwicG9ydHJhaXQiOnsiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdF9tYXhfd2lkdGgiOjEwMTgsInBvcnRyYWl0X21pbl93aWR0aCI6NzY4fQ==” tds_newsletter3-input_border_size=”0″ tds_newsletter3-f_title_font_family=”445″ tds_newsletter3-f_title_font_transform=”uppercase” tds_newsletter3-f_descr_font_family=”394″ tds_newsletter3-f_descr_font_size=”eyJhbGwiOiIxMiIsInBvcnRyYWl0IjoiMTEifQ==” tds_newsletter3-f_descr_font_line_height=”eyJhbGwiOiIxLjYiLCJwb3J0cmFpdCI6IjEuNCJ9″ tds_newsletter3-title_color=”#000000″ tds_newsletter3-description_color=”#000000″ tds_newsletter3-f_title_font_weight=”600″ tds_newsletter3-f_title_font_size=”eyJhbGwiOiIyMCIsImxhbmRzY2FwZSI6IjE4IiwicG9ydHJhaXQiOiIxNiJ9″ tds_newsletter3-f_input_font_family=”394″ tds_newsletter3-f_btn_font_family=”” tds_newsletter3-f_btn_font_transform=”uppercase” tds_newsletter3-f_title_font_line_height=”1″ title_space=”eyJsYW5kc2NhcGUiOiIxMCJ9″]