When you ask most investment experts which companies are worth buying on Uganda’s stock market, MTN almost always makes the list.
MTN entered Uganda with a simple belief: everyone deserves the benefits of a modern, connected life, after seeing potential in bridging the gap between those with and without access to digital and financial services.
Its major turning point, however, came in December 2021, when it listed 22.4 billion shares on the Uganda Securities Exchange (USE), becoming the largest public share sale in Uganda’s history, from which it raised Shs535b from more than 20,000 local investors.
This reduced MTN Group’s ownership from 96 to 83.05 percent.
During the Initial Public Offer (IPO), each share sold for Shs200, but only 12.97 percent of the planned 20 percent was taken up.
To fill the gap, MTN launched a second offer in May 2024, pricing shares at Shs170 each.
Investor demand surged, subscriptions hit 230 percent, one of the highest ever on the USE.
By October 2025, MTN’s share price was around Shs294, a gain of 47 percent for IPO buyers and over 70 percent for those who joined in 2024. The steady rise reflects confidence in its future.
The listing raised more than capital; it reshaped Uganda’s investment culture and gave ordinary Ugandans a chance to own part of one of the country’s biggest companies.
Why investors trust MTN
When MTN entered Uganda in 1998, the country had only 6,000 mobile phone users. By mid-2025, that number had risen to about 44.3 million, according to Uganda Communications Commission (UCC).
The growth illustrates how mobile technology has transformed Uganda, though many people still lack access to smartphones and affordable digital services.
Thus, to understand why investors remain loyal to MTN, you must look beyond the share price to its financial discipline.
Early this year, MTN and Stanbic were hit with one-off tax bills after a URA audit. MTN paid Shs110.9b, which cut its half-year profit by 9.7 percent to Shs267b.
Yet, the telecom’s fundamentals remained firm, with a return on equity above 58 percent, meaning MTN earns more than half a shilling for every shilling invested.
That efficiency has made it one of Uganda’s most reliable blue-chip stocks. Financial consultant Gitta Expeditto says MTN’s biggest attraction is not its share price but its dividends.
‘MTN is a dividend-growth company; it increases what it pays shareholders every time,’ he says.
MTN’s cash flow has grown by about 20 percent annually, enabling it to pay dividends three times a year, something rare among Ugandan companies.
It also maintains a solid net profit margin of nearly 20 percent, meaning that for every Shs1,000 earned, about Shs200 remains as profit.
With more than 20 million active customers, MTN continues to generate stable growth.
Even after dividend payouts, it reinvests returns at between 13 and 20 percent, levels higher than most telecoms in developed markets.
A reliable dividend machine
MTN’s dividend policy is central to its appeal. In the last three quarters, it has paid out about 95 percent of its profits as dividends, compared to its usual 79-85 percent.
‘MTN increases its payouts every year,’ Gitta notes. ‘Investors earn returns that beat inflation and enjoy steady cash flow.’
For those who bought shares at Shs170 during the 2024 offer, the dividend yield now exceeds 14 percent, an unusually high return on the USE.
Numbers behind the confidence
MTN’s digital transformation, expanding data and fintech services, has boosted its earnings per share and overall market capitalisation.
Its price-to-book ratio of 5.2x shows that the market values MTN at more than five times its asset value, reflecting its strong brand, loyal customers, and market dominance.
Meanwhile, its price-to-earnings ratio of 10.8x means investors buying at Shs294 are paying about 10 times the company’s profit per share of Shs27.4.
Analysts say investors value consistency in dividend payments, a trait MTN shares with other strong performers like Bank of Baroda and Stanbic.
While MTN’s shares are priced higher than most, much of its worth lies in intangible assets, brand reputation, trust, and scale.
These strengths make investors willing to pay a premium, confident that MTN will continue connecting Uganda and rewarding those who believe in its story.