Business Maverick: MTN’s Rob Shuter: Xenophobic attacks and looting will weigh on investor sentiment

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Business Maverick: MTN’s Rob Shuter: Xenophobic attacks and looting will weigh on investor sentiment By Ray MahlakarayMahlaka

Africa’s largest mobile phone operator has warned that the recent wave of violence in South Africa against foreign nationals that has claimed lives and ruined many businesses will have a negative investor sentiment towards the country and African continent.

Shuter said the violence will have a “significant negative implication” for investor sentiment and add another layer of complexity for doing business not only in South Africa but the rest of Africa. For South Africa, the violence is expected to have a negative impact on an already ailing economy, which is expected to pencil in growth of 0.6% in 2019, and president Cyril Ramaphosa’s drive to raise $100-billion in new investments over the next four years.

Nigeria is MTN’s largest market in terms of the number of subscribers, with 61.5-million subscribers recorded for the six months to June 2019 compared with 29.2-million in South Africa.

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