Stimulates Massive Growth In Mobile Money And Data Services
MTN Benin Stimu Growth In Mobile Mon Written by: Sheree Hanna Produced by: Mariana Lee
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MTN BENIN
Benin’s leading telecommunications company is celebrating successfully raising revenue through major initiatives and operational efficiencies
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TN Benin is fast becoming a shining beacon of the MTN Group as it strives to grow its business through innovative initiatives and its highly-motivated staff. Led by Chief Executive Officer Kennedy Melamu, MTN Benin has made significant strides to develop subscriber penetration, its mobile money and data businesses, as well as launching new enterprise business units to help Benin’s wealth of small to medium sized businesses communicate even better. The go-ahead company, which currently employs just over 300 people, is also piloting the deployment of a fibre optic cabling to enhance the quality of its transmission. And the company is on a mission to improve its operational effectiveness with a number of ground-breaking initiatives set to benefit both its staff and customers. Melamu said: “There is an awful lot happening within the company at the moment. Looking at our achievements from 2013-2014 the company had a year-on-year growth of 13 percent and an after tax profit showing an increase of 12 percent. “In our industry anywhere it is not common to find that level of growth. For the half year to the end of June 2015 our revenue was sitting at 11 percent, which shows we are still managing to find it. “The bottom line for me is that it is about the people, leading and driving them by supporting and creating the environment that allows them to do better. And this is what we have aimed to achieve.”
TECHNOLOGY
Mobile penetration among Benin’s population is currently at about 75 percent
Opportunity knocks Mobile phone penetration among Benin’s population of 11 million is currently at about 75 percent. According to Melamu the usage of mobile technology in Benin is no different to any other place in Africa as it continues to significantly changes lives of the people. He said: “Internet usage still has a very low penetration in the market of about 16 percent, but just a year ago it was six percent and my personal prediction is that by the end of the year it will reach 25 percent. “The use of mobile internet has grown by 107 percent and this is a space where we want to take advantage of a massive opportunity.” Since taking up the role of CEO two years ago, Melamu, who previously worked for
“We are at the point now where the Central Bank of West Africa is saying ‘who are these hot shots trying to break into banking we need to regulate them” –K ennedy Melamu, MTN Benin CEO
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Vodafone, which operates M-Pesa, the world’s most successful money transfer service, has made it his personal ‘baby’ to nurture MTN Benin’s mobile money offering. Launched in 2009, the mobile money business had until his arrival just 140 agents and 30,000 registered subscribers, today there are 4,000 agents and 900,000 subscribers. Growth in transaction levels has jumped massively from around 1.6 million Francs in January 2014 to an expected 80 million Francs for July 2015. Working together Challenges within the regulatory system of Benin have made conditions somewhat harder than some of MTN Benin’s competitors have experienced in breaking the mould and reassuring the nation’s banking community that the growth of mobile money should be good for all. “We are at the point now where the Central Bank of West Africa is saying ‘who are these hot shots trying to break into banking we need to regulate them’. “We are still in that phase, whereas M-Pesa which was established well over 10 years ago has jumped through those hurdles already. “However, conditions are turning for us and I think we have managed to convince a lot of people. There are currently seven or eight commercial banks operating here with a total combined customer base of 900,000. “Our mobile money service has crossed w w w. m t n . b j
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MTN BENIN the 900,000 mark. We are trying to find ways of working with the banks and I think they need to stop seeing us as a competitor but as a farm for future customers.”
The company offers both 2G and 3G and has launched 4G
Growing network MTN Benin’s mobile phone’ subscribers are set to meet the four million mark by the end of August 2015 and its network currently recognises 2.1 million smart phones. To enable more of its subscribers to own their own smart phone, the company through MTN’s procurement side, has acquired some 3G smart phones that retail at cheaper than average prices.
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MTN Benin is fast becoming the shining beacon of the MTN Group
On the technical side, the company offers both 2G and 3G from 600 sites around the country, but has now launched 4G through pilots operating in two major Benin towns. Melamu said: “The launch has caused a lot of excitement and by the end of the year we should have about 35 locations going live on 4G.” To enhance its data services to the country’s businesses, 80-90 percent of which are SMEs (small-to- medium-sized enterprises) the company has partnered with an RSD-licenced, Internet Service Provider to establish an enterprise business unit and is already seeing a massive growth in its revenue targets which are now sitting at 35 percent ahead of budget targets.
“The launch has caused a lot of excitement and by the end of the year we should have about 35 locations going live on 4G” –K ennedy Melamu, MTN Benin CEO
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MTN BENIN
MTN has procured some 3G smartphones which retail at less than the average prce
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Efficiency drive Furthermore, MTN Benin is working on a number of operational efficiencies to counteract the maturity levels revenues are hitting within the industry. Procurement has already been centralised within MTN’s group operations and Benin is among the first wave of countries to centralise its transactional activity within its Human Resources, Finance and supply chain activities. The move will create a more cost-efficient, technologically-driven platform to manage transactions cutting down on manual operation and consequently freeing up staff to become experts within their field. Melamu said: “We have also just launched a
TECHNOLOGY
Company Information INDUSTRY
Telecommunications HEADQUARTERS
Johannesburg FOUNDED
1994 EMPLOYEES
17,509 (Global; 2010)
three-month trial where everyone in the company becomes a sales person offering a commission for sales on data and mobile money. If staff are doing less manual work then they are able to contribute to the work that helps growth.” Innovative training and customer service intelligence schemes are also playing a huge part in improving the company’s overall performance. Melamu’s challenge of creating a better performing business is complete and he is now leaving Benin to join the MTN group executive in Johannesburg in role which will involve him overseeing the group’s customer experience, sales and distribution. He said: “My objective now is to grow leaders in Africa and that is what I want to do.”
REVENUE
$12.43 billion (2014) PRODUCTS/ SERVICES
Voice, Data, Digital Lifestyle
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