MTN Group, Africa’s largest mobile operator headquartered in Johannesburg, is currently facing a U.S. Department of Justice (DOJ) grand jury investigation concerning its past operations in Afghanistan and its 49 percent stake in Irancell, an Iranian mobile operator.
The probe centers on allegations that MTN may have breached the U.S. Anti‑Terrorism Act (ATA) by facilitating support for anti‑American militias through Irancell, with accusations spanning both Iraq and Afghanistan. Plaintiffs assert that MTN’s actions indirectly aided extremist groups, putting American service members and civilians at risk.
These allegations have material significance for MTN. Its shares fell by approximately 8 percent, even 9 percent at one point, following the news of the DOJ probe and a downward revision in its medium‑term domestic revenue outlook.
MTN has stated that it is fully cooperating with the DOJ, responding voluntarily to information requests. While the company emphasises it has not been formally accused of wrongdoing, it plans to defend its position and has already filed motions, including a Motion to Dismiss an amended ATA complaint filed in early August 2025.
Beyond the DOJ investigation, MTN is contending with multiple legal fronts in U.S. federal courts. Several ATA lawsuits—such as the Chand and Davis cases—remain active. These involve claims from families of Americans injured or killed in Iraq and Afghanistan from 2005 to 2010. Jurisdictional discovery has closed, with amended complaints now expanding the allegations.
Some legal analysts have raised concerns about MTN’s financial reporting. In its 2024 financial statements, MTN classified all U.S. terrorism-related litigation risks as “remote,” and thus did not report any contingent liabilities. Critics argue this could amount to misleading shareholders, potentially touching on securities fraud.
On the diplomatic front, the timing of MTN Chairman Mcebisi Jonas being appointed as South Africa’s Special Envoy to the U.S. has sparked controversy, with some suggesting that the legal exposure of MTN could complicate bilateral relations.
Despite these challenges, MTN reported a strong financial turnaround in the first half of 2025: headline earnings per share recovered from a loss of 256 cents a year earlier to a profit of 645 cents, buoyed by robust data and fintech growth in Nigeria and Ghana.
In summary, MTN is navigating a precarious legal and reputational landscape: under grand jury investigation by the DOJ, facing multiple U.S. lawsuits under the Anti‑Terrorism Act, and confronting scrutiny over its financial disclosures—all during a period of marked recovery in its African core markets.
