MTN Uganda’s Conduct Raises Concerns Over Support for Local Talent

In 2023, MTN Uganda launched a thematic campaign dubbed “Together, we’re unstoppable,” anchored on celebrating the resilience and creativity of Ugandans and providing a platform for them to showcase their skills.

For Twaha Kakaira, a budding entrepreneur building his profile within the marketing communications world through his advertising agency, CTA Space, this campaign spoke directly to his mission of supporting brands and businesses in maintaining a firm rooted in consumers’ minds. His passion led him to partner with M&C Saatchi Abel during the pitching process for the MTN account across the continent.

In April 2024, MTN Group announced M&C Saatchi Abel as its new marketing partner across all operating companies on the continent. For Twaha, this was a David and Goliath situation, as the advertising behemoth TBWA, which had implemented MTN’s marketing activities globally (including in Uganda), was set to hand over to new partners, with CTA Space taking over within the Ugandan market. However, Twaha’s excitement and strategic plans were short-lived when he learned that CTA Space had been rejected by MTN’s procurement and the local Ugandan business unit.

The communication from Nival Maharaj, a new business project director at M&C Saatchi Abel, read, “As we have now had the opportunity to engage directly with the MTN OpCo, concerns were raised about the scale of CTA Space and current capability and quality to deliver against 360-degree work. Even with the willingness to scale up the agency and skills for MTN, MTN wants to start with an agency that is more established in this regard.”

When Twaha reached out to Jacques Burger, CEO of M&C Saatchi Abel, to seek redress and inquire about the decision-making process, he was met with a stark clarification. Jacques stated explicitly, “The MOU doesn’t commit to any obligations from ourselves beyond putting yourselves forward as our affiliate partner in the Uganda market. It does not guarantee a contract or success, nor does it make any financial commitments.”

Jacques further added, “With regards to the pitch itself, you contributed or delivered no work in terms of strategy or creative development. You submitted a rate card that had to be updated several times due to incorrect information and a credentials document. It is important to note this as you have not invested any creative or strategic pitch hours towards the pitch opportunity.”

MTN Uganda had thoroughly reviewed CTA Space’s credentials and deemed the agency unsuitable for the Ugandan market. However, Jacques noted that “We have spent time understanding MTN Uganda’s point of view and following our additional assessment based on our experience around your rates submission, market research, and reviewing your credentials again, we are aligned to their view. Please note, we are not saying that you are not a good agency, but you are not an ideal partner for MTN in Uganda.”

As Twaha sought to understand the situation and save his dream fully, he learned that M&C Saatchi Abel had instead contracted Creatabuzz Communications, an outfit previously called Limelight and an affiliate of TBWA. This agency had previously handled the MTN account in Uganda and across the continent.

In response, Twaha sought legal redress, with a communication to MTN Uganda that in part read, “We are reliably informed that M&C Saatchi intends to proceed and formalize this arrangement with the new agent together with MTN Uganda, an action intended to arbitrarily exclude CTA Space Limited, despite M&C Saatchi having communicated the appointment of CTA Space Ltd as its affiliate agency in Uganda after the successful pitch. Consequently, it is our position that M&C Saatchi is legally in breach of our arrangement. Kindly note that we have since legally communicated our dissatisfaction to M&C Saatchi and equally tried to initiate an amicable resolution to this detrimental act by M&C Saatchi.”

He also implored MTN Uganda to defer any formalization with M&C Saatchi and the purported new agent until CTA Space Ltd has been rightfully remedied by M&C Saatchi, upon which CTA Space would proceed to initiate court proceedings against M&C Saatchi and any other party it deems fit, seeking appropriate compensation for costs incurred, anticipated earnings, and injunctive remedies or any other applicable reliefs.

As MTN Uganda continued its silence, Twaha received a reply from M&C Saatchi Abel lawyers who purported that, “The MTN/MCSA contractual ecosystem is designed in such a manner that any agreements in the local territories are to be concluded directly between the local MTN company in question (i.e., MTN Uganda) and the relevant local agency.” This statement is in direct opposition to the commitment clause (outlined earlier) within CTA Space’s MoU with M&C Saatchi Abel.”

With these events unfolding, one wonders whether MTN Uganda is genuinely providing a platform for Ugandans to showcase their skills or simply engaging in “greenwashing” (if the term can be borrowed from environmentalists) while preferring to work with established entities. For Twaha, the question remains whether he is fighting a losing battle in this David versus Goliath case or simply being cheated out of a fair hearing by MTN Uganda.