Telecom company invests in Iran's version of Uber

15:25 - 14 October 2016

A worker walks past an outlet of South Africa's MTN Group in Johannesburg, South Africa, February 23, 2016. REUTERS/Siphiwe Sibeko

MTN's investment in Snapp strengthens the telecom company's ties with Iran as it tries to get back R15.4 billion.

South Africa-based

According to Snapp CEO Shahram Shahkar, the funds will allow it quickly expand to other cities other than Tehran.

MTN will transfer the cash to Iran Internet Group, the owner of the app who operates and invests in startup and e-commerce companies.

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MTN's investment in Snapp strengthens the telecom company's ties with Iran as it tries to get back R15.4 billion from the country after the US lifted economic sanctions.

Former MTN Chief Financial Officer, Brett Goschen, in August, said it will take at least five months for the telecom company to transfer all of its funds in the country due to Iran's lack of a relationship with international banks.

Currently, MTN holds a 49% stake in a joint venture with Iran's second largest telecommunications provider, IranCell. Iran is also one of the 32 markets in which MTN operates in the middle East.