MTN Chairman's appointment as US envoy may be more harmful for SA

MTNis the only publicly invested group in South Africa with a significant investment in Iran

- EDWARD WEST

MTN chairman Mcebisi Jonas’ appointment as the new Special Envoy to the US has been construed by some as possibly the worst move for South Africa, and his past comments of US President Donald Trump being a “racist, homophobe” and “rightwinger” is only half the problem.

Jonas’ appointment comes after former South Africa's Ambassador to the US, Ebrahim Rassool, was recently expelled from the country after criticizing President Donald Trump in public.

MTN is the only publicly invested group in South Africa with a significant investment in Iran, holding a 49% stake in the Irancell telecom operator, the second-largest mobile network operator in that country, which is 49% owned by MTN and 51% by Iran Electronic Development Company (IEDC).

Iran faces numerous economic and human rights sanctions from individual countries and multilateral organisations such as the US, European Union, and the United Nations, due to its ongoing development of its nuclear program.

According to an online search by Business Report, the IEDC is a joint venture between Bonyad Mostazafan and Iran Electronic Industries, which is controlled by the Ministry of Defense and Armed Forces.

Bonyad Mostazafan is linked to the Islamic Revolutionary Guards Corps.