MTN Group is continuing to invest in its Iranian unit despite the sanctions imposed on the market by the USA.
The sanctions have made it challenging to repatriate earnings from MTN Irancell, which is 49% owned by MTN Group. However, the parent company has stated that it is legally able to convert its earnings into loans to its Iranian subsidiary.
This in turn is enabling MTN Irancell – the country’s second largest operator – to invest in its wireless and fixed networks. MTN Group hopes that this will lead to sales growth.
Ralph Mupita, MTN Group’s CFO, said: “This has placed MTN Irancell in a position where it has enough cash to continue funding its network expansion, even during these tough times”.