Nedbank, one of South Africa’s prominent financial institutions, has decided to cut ties with MTN’s black empowerment scheme, Zakhele Futhi. This move has sparked a heated debate within the telecoms and technology sector.
- The decision to sever ties came after a dispute emerged between Nedbank Private Wealth and MTN Zakhele Futhi (MTNZF) regarding fees. The empowerment vehicle owns around 4% of MTN’s issued share capital, equivalent to approximately 77 million shares.
- MTNZF serves as a special-purpose empowerment vehicle for MTN, Africa’s largest mobile operator. It was listed on the Johannesburg Stock Exchange (JSE).
- With Nedbank’s departure, the future of MTNZF and its relationship with MTN is uncertain. This development raises questions about the empowerment scheme’s future viability and influence within the telecommunications industry.
- The severance of ties between Nedbank and MTNZF highlights the challenges and complexities involved in implementing effective black economic empowerment initiatives in South Africa.
- This decision has ignited discussions about the role of financial institutions in supporting empowerment schemes and the importance of transparency and fair fee structures.
- The fallout from this dispute may have broader implications for the telecoms and technology sector in South Africa, with potential ripple effects on investment, ownership structures, and corporate governance.