Nine years. Thousands of Black South African investors. A big empowerment promise. So, what’s the return on that MTN Zakhele Futhi investment? Well, here’s what we know and what MTN isn’t exactly shouting from the rooftops.
What’s Happening?
After nearly a decade, MTN Zakhele Futhi, the telecom giant’s 2016 Black Economic Empowerment (BEE) scheme, is officially closing shop. Investors can expect to start receiving payouts from July 28, 2025. According to TechCabal’s original report, the scheme is being unwrapped, with proceeds to be distributed to shareholders, followed by a delisting of the entity from the Johannesburg Stock Exchange (JSE).
So, How Much Are Investors Getting?
Let’s be honest, it is complicated. Investors originally bought in at R20 per share, with the belief that the long term returns would reward their patience and support for transformation. However, while financiers and debt providers are getting fully repaid, ordinary investors may not even break even.
According to Currency News, there’s a high chance that some shareholders will receive less than their original R20/share investment. Yes, you read that right. After nearly 9 years, many will likely walk away with less than they put in.
Why the Underwhelming Return? Let’s break this down:
- Launched in 2016, Zakhele Futhi aimed to promote Black ownership by giving public investors access to 4% equity in MTN Group, funded partly by debt and share price growth.
- It was structured to run for 8 years. But delays hit in 2024 after MTN’s share price dropped, making liquidation risky.
- In 2025, MTN began winding things down more quietly than expected selling off shares to repay debts and settle taxes and admin costs.
- What’s left? That’s what’s being split among empowerment shareholders and it’s not a windfall.
TechCabal reports that this return could land between R20 to R23 share at best but that remains a projection, not a promise.
So, What Does This All Mean?
This was supposed to be a story of economic inclusion. And while it did give thousands of Black South Africans a seat at the telecom table, the actual financial reward? it highlights a tough reality about many BEE schemes: the structures often favour the lenders, not the shareholders.
And as TechCentral puts it, this won’t exactly be remembered as a “generational wealth” moment.
What’s Next?
- Investors will begin receiving what’s due from July 28, 2025.
- MTN Zakhele Futhi will be delisted from the JSE.
- The entity will seize from being registered after payouts are completed.
So yes, the curtain is falling. And for most investors, the applause will probably be polite at best.
Read TechCabal’s original report here
See Currency News’ deeper dive here
Related: Why Jensen Huang Says China Cannot Count on Nvidia’s Chips
