MTN Rwandacell Plc shareholders have extended the terms for existing board members, allowing them to serve for the next three years.

The decision was approved during the Annual General Meeting (AGM) held on June 28, 2024.

The decision means that Faustin Mbundu, the board chair, alongside his directors Julien Kavaruganda, Karabo Nondumo, Michael Fleischer, Mark Nkurunziza, and Yolanda Cuba, will serve on the board until 2026 before the next election in 2027.

According to MTN Rwanda management, the company’s Corporate Governance Code does not set a limit for director terms, which means directors have a 3-year renewable term.

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Faustin Mbundu, a business magnate and the owner of MFK Group Ltd, an investment company with a diversified portfolio of investments, has been leading MTN Rwanda’s Board of Directors since 2021.

His nomination and appointment at the time was approved and endorsed by shareholders holding 80 per cent of shares in MTN Rwanda.

MTN shareholders also ratified the appointments of new directors, Peace Uwase Masozera and Wanda Matandela, which were made through a shareholders’ resolution effective as of 1 January 2024.

Masozera is a finance professional and the former Director General of the Financial Stability department of the National Bank of Rwanda, while Matandela is the current Chief Commercial Operations Officer at MTN South Africa.

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Other resolutions

At the AGM, shareholders approved the final dividend distribution for the year ended December 31, 2023, amounting to Rwf4.24 per share, totalling Rwf5.7 billion.

Shareholders recorded in the Share Register as of June 7, 2024, can expect to receive their dividends on July 3, 2024.

Shareholders also approved the re-appointment of Ernst & Young Rwanda Limited as the Company External Auditors until the conclusion of the next AGM and authorisation for the board to fix their remuneration, and the adoption of the 2023 Integrated Annual Report, among other tasks.

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MTN Rwanda, the leading telecommunications operator in the country, is counting on the 4G licence it secured last year after the government broke the 4G monopoly, to expand its market share.

MTN Rwanda CEO, Mapula Bodibe, said in a statement that they have made substantial progress in expanding their 4G network, now achieving a 4G population coverage of 84.5 per cent.

"We are approaching the one-year mark since obtaining our 4G license, which has enabled us to significantly increase digital access and improve the internet user experience across the country,” she told shareholders.

The license was obtained in July 2023.

To further accelerate the operator&039;s expansion, Bodibe stated that MTN Rwanda was exploring strategic alliances and aligning with the government's digital services policy to enable connectivity and access for all.

MTN Rwanda’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 they said is affecting their foreign obligations such as costs settled in dollars.