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| The Role of Multi-National Companies in the Economic Development of Uganda:A Case Study of MTN
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Twesigye Nduhura Prof. Caleb Tamwesigire , Prof. Arthur Sunday
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Abstract:
The study examined the role of Multi-National Companies in the economic development of Uganda considering MTN as the case study. The study was guided by the following objectives that is to analyze the contribution of MTN; to examine the challenges facing MTN ; to establish the strategies for enhancing MTN operations in the economic development of Uganda. From a sample of 68 respondents, the study found out that MTN Uganda has registered a positive performance increasing its subscriber base from a mere few hundreds to about 9.6 million by 2019 using their latest 3 G and 4G network coverage , MTN Mobile Money service and other innovations due to technological development and proficiency. With this many people have obtained employment, telecommunications facilities have become more developed and accessible to all. Also, it was discovered that MTN faces a number of challenges for example they are accused of under declaring of its sales and causing public revenue losses in tax revenue, accused of compromising national and regional security, and relations between the government and the company have been tested over the past year by a series of setbacks including a security raid on the company's data centre, delayed renewal of its operating license and the expulsions of its executives. There is stiff competition from other telecom companies, the growth in Uganda's Internet availability is increasing demand for local data services, data security, and streamlined content delivery, including Tier-rated data centers (currently zero in Uganda), content partnerships, and data security expertise. The consumers demand a lot of data for use in office work and the widespread social media use such as facebook, imo, twitter and many others. This has given the company and the outlets in Entebbe a lot of money for direct purchases and conversion of airtime to MBs. The study recommended that MTN Uganda should manage its relations with the local society better by making its communications services available at a much lower cost, with the intent of gaining many more subscribers, MTN Uganda might establish collaborative relationships with local organizations, which could promote the distribution of services in return for rebates and MTN staff should volunteer time to coach young entrepreneurs or small enterprise groups in the surrounding community so that they can have better working relations today and in the future with the company as part of its corporate social responsibility.
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