MTN urged to rethink its Irancell Investment as Iran-Israel conflict grows

As the deadly conflict between Iran and Israel enters its fifth day, pressure is mounting on South Africa’s MTN Group to reconsider its major investment in Iranian mobile network operator MTN Irancell.

While MTN insists its staff in Iran are safe, experts warn that in times of war, no business can guarantee protection or stability.

MTN Irancell is Iran’s largest mobile operator, providing millions of Iranians with 2G to 5G mobile services. MTN owns 49 percent of the company, with the rest held by its local partner, Kowsar Sign Paniz.MTN’s public message has so far been calm.

“As we understood from the Irancell management, all staff are safe at this stage,” said MTN chief sustainability and corporate affairs officer Nompilo Morafo.

But with missiles flying and tension rising across the Middle East, some believe that MTN is not taking the situation seriously enough. Business analysts say war poses enormous risks to companies operating in conflict zones.

From physical damage to infrastructure to the sudden breakdown of services, or even sanctions and trade restrictions, the dangers are wide-ranging.

South Africa’s Department of International Relations and Cooperation (Dirco) has also raised the alarm. It has asked South Africans living or working in Iran to register with the embassy in Tehran so they can be contacted if needed.

But Dirco also admitted that South African government support in the area is very limited.“There may be no face-to-face consular help if an emergency occurs,” said Dirco spokesperson Chrispin Phiri.

“The government may not be able to help you depending on your location.”Phiri also said the government is deeply concerned about the growing violence. “We extend our condolences to all those who have lost loved ones. Civilians and infrastructure like hospitals and communications towers must never be targeted.”

These statements make it clear that the conflict is not only a political and humanitarian issue, but also a corporate one.

MTN Irancell is part of the country’s critical infrastructure. If attacks damage its systems or if the government takes emergency control of the network, MTN could suffer massive financial losses. Iran is no stranger to political tension. MTN has managed to operate there for years despite economic sanctions and global criticism.

But experts say a full-scale war is different. Infrastructure may be destroyed, cyberattacks may increase, and people may not be able to get to work safely. All of this could hurt MTN’s ability to keep services running.

The war is also driving up global oil prices. This will hit fuel costs in South Africa and push up inflation. The ripple effects of the conflict are likely to be felt across the economy.

For MTN, the message is clear. This is not business as usual. It may be time to step back and seriously rethink whether the risks in Iran are worth the reward. In war, no company is immune. And no one is truly safe.