MTN South Sudan to Shut Down

By Soko Directory Team / March 30, 2016




South Sudan will soon go without the services of MTN, one of the Africa’s largest phone services company. According to a statement from the company, MTN has said that it is going to cut down jobs as well as halt any expansion plans in South Sudan due to the ongoing war.

According to the new plans, the number of jobs will now be reduced from the current 170 to 80 while the plans to build 40 communication towers in the country have been stopped. MTN was the first company to venture into South Sudan when the country was still at her maiden days of independence and invested close to 170 million US Dollars for the past two years but ever since the company has never seen any profit.

South Sudan is now headed to the dogs due to the ongoing war that broke up when the current head of State Salver Kiir differed with his vice president then, Riek Machar. Just two years into her independence and the war broke up dismantling all the new infrastructures that had been put in place. In South Sudan at the moment according to many global economic analysts, there is a huge decrease in the customer base and many South Sudanese have to choose between buying a phone, buying airtime or buying food. The majority have opted for food leaving the telecommunication industry into a limbo.

MTN now has close to one million subscribers in South Sudan but the management says that the subscription has reduced by more than 10 percent. In the recent months, South Sudan, which is rich in producing oil has seen her currency collapsing in terms of value for more than 100 percent driving it towards one of the most useless currency in the world. According to the IMF, the economy of South Sudan, if the war goes on, is likely to collapse by 5.3 percent. South Sudan is third in terms of largest crude oil in the Sub-Saharan Africa with more than 160,000 barrels per day.

Most banks in Kenya made huge losses in terms of general profits on the South Sudan market due to the devaluation of the currency with most banks indicating the intention to sell part or whole of their assets in South Sudan.


Article by Juma Fred.

 



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author







Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (137)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950