The year South African employment sector saved by MTN for creating jobs
In 2021, MTN South Africa made significant contributions to job creation within the country. The company created 6,234 direct jobs and 140,253 indirect jobs. These figures come from a “true value assessment” conducted by the consulting firm KPMG, which analyzed the telecom operator’s impact on the South African economy during that year. The results were presented during a media briefing held at MTN’s Johannesburg headquarters.
The assessment used a method that evaluates a company’s positive and negative socio-economic and environmental impacts, and then quantifies these effects in financial terms. The findings revealed that MTN’s true value creation in 2021 was 17 times greater than the profit it generated during the same period. The report highlighted MTN’s substantial role in fostering inclusive economic growth, especially through its socio-economic contributions that addressed the challenges of unemployment, poverty, and inequality in South Africa. The company achieved this by investing in network infrastructure that promoted digital inclusion and reduced its environmental footprint.
Frank Blackmar, KPMG’s lead economist, discussed the results with ITWeb during the event. He explained that the report detailed how MTN’s activities, such as capital infrastructure investments, operating expenses, and tax contributions, positively impacted South Africa’s GDP and played a pivotal role in driving the country’s economic growth. These efforts led to the creation of approximately 146,487 jobs, both directly and indirectly, across various sectors of the economy. Direct jobs refer to those employed directly by MTN, while indirect and induced jobs encompass opportunities created through its wider ecosystem, including contractors, suppliers, and ecosystem partners.
Blackmar further explained that these indirect jobs were the result of the “multiplier effect,” where the ripple effect of MTN’s business activities extends throughout the economy. As a technology company, MTN employs highly skilled individuals like engineers and technicians. Through its network and infrastructure, MTN enables individuals to educate themselves, conduct business transactions, and engage in digital connectivity, thereby offering significant opportunities for personal and professional growth. The more people MTN connects, the more opportunities for development arise across various sectors, including financial services, construction, and logistics.
KPMG also calculated the measurable social value of the jobs created by MTN, which amounted to R1.9 billion during the period. This figure represents the broader impact of job creation beyond just salaries and wages. During the event, MTN’s CEO, Charles Molapisi, expressed pride in the fact that the company’s true value creation significantly exceeded its profits. He noted that in 2021, the social value generated through MTN’s products and services was approximately R450 million. This total included R219 million from MTN Mobile Money and R230 million from newly established connections.
Molapisi emphasized that MTN’s growth is tied to the success of the society, economy, and ecosystems in which it operates. The company strives to further leverage its technologies and core capabilities to support socio-economic development. Additionally, the study examined the social impact of MTN’s newly connected customers. This included the value created for individuals by enabling them to connect with loved ones, access education and learning, save time and costs for health-related activities, and engage in entertainment, all of which contribute to their overall well-being. According to KPMG’s findings, the total social impact from newly connected customers was valued at R230 million.