MTN Rwanda’s Board of Directors has approved a recommendation for a dividend payout of Rwf5,724,860,000 to shareholders.

The development is subject to approval by shareholders at the next Annual General Meeting.

The payout will be approximately Rwf4.24 per share.

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"Subject to Shareholder approval, the Dividend will be paid out on 3 July 2024, to those shareholders recorded in the Share Register as of 7 June 2024,” reads part of the resolutions.

The development comes at a time when the telco is experiencing slow growth in its financial performance.

MTN Rwandacell Plc’s net earnings dropped significantly by 28.9 per cent to Rwf11.4 billion in 2023, despite an 11 per cent increase in service revenue to Rwf246.5 billion and a 6.5 per cent year-on-year growth in subscriber base.

The company blamed the decline on higher finance costs related to tower leases and a depreciation of the Rwandan franc, which the company said is affecting their foreign obligations.