MTN, Africa’s largest mobile operator by subscriber numbers, has learnt the hard way that doing business in Africa isn’t as easy as it seems. One of SA’s success stories, MTN began its African foray early and set up shop in several key countries, such as Nigeria, well ahead of its competition. Yet, moving into the continent comes with costly risks, as it discovered in October when Nigerian authorities hit it with a whooping $5.2 billion fine – at that time a record – for failing to disconnect unregistered users.

Although the fine was later dropped to $3.9 billion, this was still a monumental hurdle for the company. MTN has since settled the fine, agreeing to pay R1.7 billion over three years – a more flexible solution – and ensure it complies with all of Nigeria’s regulatory conditions. It also vowed such a misstep will not be repeated. That promise, however, only came after it had been soundly criticised for a lack of good governance and its share price had tanked. Although the share price has recovered somewhat since the fine was paid, by the end of May, MTN’s stock had lost R118 billion in market capitalisation, putting it behind Vodacom as Africa’s most valuable mobile operator.