Africa’s telecoms giant, MTN Group, is now entangled in a high-stakes legal battle after a US court allowed an Anti-Terrorism Act lawsuit to proceed, further complicating already strained diplomatic relations between South Africa and the United States.
The lawsuit, filed in the Eastern District of New York, accuses MTN and other tech companies of knowingly doing business with Iran’s Islamic Revolutionary Guard Corps (IRGC), a group designated by the US as a Foreign Terrorist Organisation since 2019. Plaintiffs, over 50 American citizens, allege that MTN’s financial and technical dealings supported IRGC activities that led to the deaths and injuries of US personnel in Iraq between 2011 and 2016.
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The ruling to advance the case to the discovery stage comes just one day after President Cyril Ramaphosa appointed MTN chairperson Mcebisi Jonas as South Africa’s Special Envoy to the US. Critics quickly highlighted Jonas’ past remarks against former US President Donald Trump and his links to business in Iran.
Despite the controversy, Ramaphosa’s spokesperson Vincent Magwenya defended Jonas’ appointment, emphasizing his private citizen status at the time of the remarks and his qualifications in both business and diplomacy.
LegalBrief Africa noted that MTN has already appealed the US court decision. Meanwhile, Washington is considering legislation that could result in diplomatic and economic penalties against South Africa, depending on the case’s outcome and South Africa’s political stance.
Adding to MTN’s legal woes, Turkcell’s $4.2 billion bribery lawsuit against the company over a telecoms contract in Iran remains unresolved in South Africa’s Supreme Court of Appeal.
Although MTN does not operate in the US, it has partnerships with US companies, including Meta, to improve communication services across Africa. Analysts warn that the lawsuit could trigger broader scrutiny of US business ties with South Africa and place pressure on companies like Microsoft and Meta to reassess their partnerships.
As tensions rise, South Africa’s government faces the challenge of defending one of its largest corporations while managing its vital trade relationship with the United States.
