MTN is headed for turbulent times as the United States makes plans to re-imposes economic sanctions in Iran.
The Iranian currency has responded to the news by taking a tumble.
This is bad, because a weak Rial will means less profits for the local cellphone giant.
Vestact Portfolio Manager, Byron Lotter, say the sanctions will create uncertainty for MTN, the Iranian economy and MTN clients alike.
He says the sanctions will mean less economic activity which is likely to erode consumers’ disposable income.
Lotter says the sanction is likely to make it difficult for MTN to repatriate profits back home.
In 2017, MTN was able to repatriate about 1 billion dollars, after 16 long years.
This was largely due to the US lifting some of the sanctions against Iran in 2015.
Lotter says MTN is unlikely to leave Iran as this round of sanctions is only coming from the US.
