A fierce battle has erupted in Uganda’s advertising industry, with global powerhouse M&C Saatchi Group accused of sabotaging a local firm, CTA Space Ltd, in the race for a lucrative contract with MTN Uganda, one of the country’s leading telecommunications companies.
This contract, highly coveted due to MTN Uganda’s vast customer base and extensive service range, represents one of the most significant advertising opportunities in Africa.
The High Stakes of the MTN Uganda Contract
The MTN Uganda account is a goldmine in the advertising world, boasting a retainer revenue of up to UGX 300 million (USD 80,000) per month.
In 2023, MTN Uganda launched the “Together, We’re Unstoppable” campaign, celebrating the resilience and creativity of Ugandans.
This campaign was a perfect fit for CTA Space Limited, a local advertising agency driven by a mission to support brands in deeply connecting with consumers.
CTA Space’s founder, Twaha Kakaire, saw this as a chance to solidify his agency’s standing in the competitive marketing industry.
To bolster their chances of winning the MTN account, CTA Space partnered with M&C Saatchi Abel, a South Africa-based branch of the global M&C Saatchi Group, during the pitch process.
The understanding was that if successful, CTA Space would handle MTN’s advertising needs in Uganda, with M&C Saatchi Abel managing the overall account across Africa.
A Deal Gone Sour
On September 8, 2023, CTA Space and M&C Saatchi Abel signed a Memorandum of Understanding (MOU) to formalize their collaboration for the MTN Uganda pitch.
The MOU outlined the terms of engagement, positioning CTA Space as the local partner responsible for executing the account in Uganda if the bid was successful.
However, despite M&C Saatchi Abel’s success in winning the MTN account, things took a dark turn.
On April 22, 2024, M&C Saatchi Abel informed CTA Space that they had been appointed as MTN’s marketing services partner across Africa, effective January 1, 2025. Yet, instead of honoring their commitment to CTA Space, M&C Saatchi Abel announced they had chosen another agency, CreateAbuzz Communications, to manage the MTN Uganda account.
M&C Saatchi Abel claimed that CTA Space had been rejected by MTN Uganda’s procurement department due to concerns over the local agency’s capacity to handle the account.
In an email from Nival Maharaj, M&C Saatchi Abel’s new business project director, dated June 28, 2024, it was stated that despite M&C Saatchi’s efforts to present CTA Space in a favorable light, MTN Uganda preferred a more established agency.
CTA Space Fights Back
Twaha Kakaire, disbelieving M&C Saatchi’s claims, reached out to the CEO of M&C Saatchi Abel, Jacques Burger, for clarification.
In response, Burger stated that the MOU did not guarantee any contract or financial commitment to CTA Space and asserted that CTA Space had not contributed significantly to the pitch process.
Despite these claims, investigations by local media suggest that M&C Saatchi’s reasons for dropping CTA Space were not entirely genuine.
There are allegations that M&C Saatchi Abel was swayed by David Case, the owner of CreateAbuzz Communications, which was previously known as Lime Light Limited.
Lime Light had previously handled the MTN account under the TBWA Uganda banner and had a longstanding relationship with MTN.
Faced with this setback, CTA Space has initiated legal action against M&C Saatchi Abel, seeking compensation for costs incurred, lost earnings, and other remedies.
They have also reached out to MTN, urging the telecom giant to delay formalizing any contract with M&C Saatchi Abel and CreateAbuzz until the matter is resolved.
The Broader Implications
This dispute highlights the challenges faced by local agencies in Africa when competing against global firms for major accounts.
Twaha Kakaire expressed his frustration, noting that local agencies are often unfairly sidelined, despite their potential to contribute significantly to the economy.
He called for greater transparency and fairness in the procurement processes, ensuring that local businesses have a fair shot at such lucrative opportunities.
As the legal battle unfolds, the future of the MTN Uganda account remains uncertain, with CTA Space fighting to reclaim what they believe is rightfully theirs.
