South African telecom giant MTN is grappling with intensified challenges in Iran due to US sanctions and recent missile strikes that killed key leaders. Its 49% stake in Irancell has become a frozen asset, preventing fund repatriation since 2018. The deaths of Ayatollah Ali Khamenei and Defence Minister Amir Nasirzadeh have further disrupted operations.
The ongoing tensions in Iran are severely affecting South African businesses with international exposure, particularly MTN Group. As a multinational telecom operator, MTN holds a 49% stake in Irancell, Iran's second-largest mobile network. Group CEO Ralph Mupita described this investment as a "frozen asset" during a September 2025 briefing, noting that US sanctions have blocked the repatriation of funds or capital movements since May 2018.
Recent events have compounded these issues. On Saturday, a missile strike killed Supreme Leader Ayatollah Ali Khamenei and Defence Minister Amir Nasirzadeh, leaving Irancell without clear leadership pending a new Supreme Leader. In January, the MTN-Irancell board dismissed CEO Alireza Rafiei for delaying the network shutdown during protests and appointed Mohammad Hossein Soleimanian, a senior member of the Islamic Revolutionary Guard Corps (IRGC), as replacement.
MTN's communications team stated that the company intends to sell the stake but cannot do so until sanctions are relaxed or lifted, leaving it without an authorized counterparty for negotiations. No South African nationals have worked in Iran for some time.
Irancell's 51% ownership lies with the Iran Electronic Development Company, linked to Iran's military-industrial complex. This includes co-ownership by Iran Electronics Industries (Sairan), a Ministry of Defence subsidiary once headed by Brigadier-General Aziz Nasirzadeh, and the Bonyad Mostazafan, a state-controlled foundation under the late Khamenei's office.
The IRGC, designated a Foreign Terrorist Organisation by the US, is expected to gain control over Bonyad Mostazafan amid power struggles. MTN faces a US Department of Justice grand jury investigation into its Iran and Afghanistan operations, plus a civil lawsuit under the US Anti-Terrorism Act. Plaintiffs, families of American soldiers, claim MTN's venture funneled billions to the IRGC. The network's shutdowns during protests and US-Israeli strikes highlight IRGC's operational influence, turning MTN's minority stake into a significant legal liability.
