MTN appoints new SA head

MTN has overhauled its senior executive structures in a bid to make the company more agile as it wrestles mounting competition.

The changes have resulted in the division of the strategy, mergers and acquisitions portfolio into two and a new chief executive for MTN South Africa, as Karel Pienaar is promoted to the new position of group chief strategy officer.

Zunaid Bulbulia, the former chief financial officer and acting chief business officer for MTN Business, would replace Pienaar as MTN SA chief executive, Africa’s largest cellular network operator announced yesterday.

Khumo Shuenyane, who was previously in charge of the strategy, mergers and acquisitions (M&A) portfolio, would focus on M&A and international business development, the company said.

Group chief executive Sifiso Dabengwa said Pienaar and Bulbulia were experienced executives who understood the company’s business priorities and challenges.

The appointments came a day after MTN returned its former chief executive, Phuthuma Nhleko, to a senior role at the group as chairman.

MTN said the new structure would help to define clear lines of responsibility, especially on strategy and M&A.

It also follows the scrapping of Turkcell’s $4.2 billion (R41bn) lawsuit against MTN in the US at the beginning of the month.

These changes will possibly not be the last as the market leader is fighting for a shrinking piece of the cellular pie.

“It shows that MTN is responding to the changing dynamics,” Spiwe Chireka, the programme manager for telecoms in Africa at the International Data Corporation, said.

Chireka added that the creation of the strategy position was indicative that “things are getting quite intense and the company needs to stay ahead, especially in a market such as South Africa, which has competition aspects”.

MTN has also thrown itself headlong into a bid for a licence in Myanmar, and is rumoured to be scouting for growth in India as room for expansion in Africa is scarce.

Angola, which was offering a third operating licence, might be the next big opportunity on the continent to lure South African operators Vodacom and MTN, she added.

“The fact that they have someone dedicated to M&A means we need to look out for MTN. We might be expecting a new wave of acquisitions. They have been making moves but not aggressively,” Chireka said.

Mvunonala Asset Managers portfolio manager Farai Mapfinya said of the changes: “It looks like they need some focus on the offshore side because opportunities are few and far between. They have to scratch much deeper than they used to.”

He said consolidation of its position in current markets might not be an option for now.

Pienaar, a founding member, will be responsible for overseeing MTN strategy across its 22 operations. Bulbulia, also a founding member, has 19 years telecoms experience.

MTN closed 3.16 percent lower at R176 on the JSE yesterday, which analysts attributed to general market decline.