MTN CEO to step down

Phuthuma Nhleko, group president and CEO of Africa's largest mobile operator, MTN, has relinquished his position after eight years at the helm of the company.

Nhleko gave no specific reasons for stepping down, saying only that he will not be renewing his long-term contract that ends in June this year in order to pave the way for the next generation of leadership for the group. Nhleko said in a statement last week that it was time for him to start thinking about the next phase of his career.

MTN operates in more than 20 countries in Africa and the Middle East including Zambia, Rwanda, Nigeria, Iran and Yemen. Nhleko has been the force behind MTN's expansion strategy. He becomes the second African telecom CEO to step down in just one month, after Zain CEO and Deputy Chairman Saad Al Barrak resigned his position last month.

Nhleko has, however, agreed with the board of directors to continue with his current role up to the end of March 2011. During the remainder of his tenure, Nhleko has agreed to focus in particular on achieving key objectives of the company, including facilitating a seamless transition once his successor has been appointed. Under his leadership, MTN has grown through acquisitions into a group with more than 100 million subscribers across Africa and the Middle East.

African telecom analysts, however, said it was a good idea for Nhleko to step down in order to allow someone new to take over and come up with new strategies and fresh ideas.

"Nhleko has done his best to put MTN where it is today. What is needed now is someone new to come up with new ideas and expansion strategies," African Center for ICT Development's Walter Tapfumanei told Computerworld Zambia.

Nhleko's exit comes after MTN and India's Bharti Airtel failed for the second time last year to conclude a US$23 billion merger that would have created the world's third-largest mobile-phone company in terms of subscribers. MTN is further struggling to acquire Net*One, a Zimbabwean government-run mobile-phone operator that is up for sale.