A mother of wars has broken out in the business world as global Advertising Agency M&C Saatchi Group sabotages a local firm, CTA Space Ltd for a lucrative advertising contract with MTN Uganda, a leading telecommunications company in the country.
This opportunity (advertising deal) as expected, attracts many agencies due to MTN Uganda’s heavy work traffic brought by its large customer base and extensive range of services. The ad-agency contract with MTN is the biggest in Africa since MTN enjoys a significant market presence and influence.
For context, the MTN Uganda account – it being the biggest account in the advertising industry, has a retainer revenue of up to UGX 300 million shillings (USD 80,000) per month.
In 2023, MTN Uganda launched a thematic campaign dubbed “Together, we’re unstoppable,” anchored on celebrating the resilience and creativity of Ugandans and providing a platform for them to showcase their skills. For Twaha Kakaire, a budding entrepreneur building his profile within the marketing communications world through his advertising agency, CTA Space Limited, this campaign spoke directly to his mission of supporting brands and businesses in maintaining a firm rooted in consumers’ minds. His passion led him to partner with M&C Saatchi Abel during the pitching process for the MTN account across the continent.
The Story
On the 8th September 2023, CTA Space Ltd in Uganda and M&C Saatchi Group trading as M&C Saatchi Abel (“M&C Saatchi Abel”), based in South Africa, entered into a Memorandum of Understanding (“MOU”) outlining terms of engagement for the pitching process as part of the Request for Proposal (RFP) for the appointment of a marketing and advertising service provider by MTN Group in all markets across Africa, where the big telco business operates.
This followed CTA Space being one of the affiliate agencies that the global M&C Saatchi Abel had collaborated with to pitch to MTN, as they would become the Opco agencies to service the account (MTN) fully within their respective markets and sign contracts directly with the local MTN Opcos in those markets. Subsequently, M&C Saatchi Abel were successful in the pitch to MTN, utilizing credentials and rate cards submitted by CTA Space Ltd.
By subsequent notice, vide email dated 22nd April 2024, M&C Saatchi Abel communicated to CTA Space and the other affiliates that it had been appointed as the new marketing services partner across all MTN Group operating companies effective 1st January 2025.
In this case, CTA Space, which is 100% owned by Ugandans, would handle the Uganda market and would be directly contracted by MTN Uganda once presented as the local affiliate to M&C Saatchi Abel, with whom they worked to win the account.
Sadly, despite M&C Saatchi Abel being pre-qualified on the basis of the credentials and rate card submitted by CTA Space Ltd in support of its pitch to MTN, M&C Saatchi has since reneged on this position and decided to irregularly appoint another agent (CreateAbuzz Communications) who was not privy to the pre-qualification process or appointment.
In an email from Nival Maharaj, a new business project director at M&C Saatchi Abel, dated 28th June 2024, M&C Saatchi asserted that CTA Space was rejected by MTN Uganda’s Procurement function, albeit without following or involving CTA Space in any due diligence/process.
The email read: “While we have been presenting your agency in the best possible light to ease MTN’s concerns and feedback, regrettably, CTA Space has been rejected by MTN Procurement and the local Ugandan OpCo.
Context on the decision:
•As we have now had the opportunity to engage directly with the MTN OpCo, concerns were raised about the scale of CTA Space and current capability and quality to deliver against 360 degree work.
•Even wth the willingness to scale up the agency and skills for MTN, MTN are wanting to start off with an agency that is more established in this regard.
We know that you have been looking at talent, and structures on your side and understand that this is not the outcome that you have been waiting for, however, the decision is unfortunately out of our control and has been
mandated by MTN.”
However, this website’s independent investigations show M&C Saatchi is not genuine in it’s claims that CTA Space was rejected by MTN Uganda.
Still unconvinced, Twaha Kakaire reached out to Jacques Burger, CEO of M&C Saatchi Abel, to seek redress and inquire about the decision-making process, but he was met with a stark clarification.
Jacques wrote: “The MOU doesn’t commit to any obligations from ourselves beyond putting yourselves forward as our affiliate partner in the Uganda market. It does not guarantee a contract or success, nor does it make any financial commitments.
With regards to the pitch itself, you contributed or delivered no work in terms of strategy or creative development. You submitted a rate card that had to be updated several times due to incorrect information and a credentials document. It is important to note this as you have not invested any creative or strategic pitch hours towards the pitch opportunity.”
MTN Uganda- M&C Saatchi claimed- had thoroughly reviewed CTA Space’s credentials and deemed the agency unsuitable for the Ugandan market. However, Jacques noted that “We have spent time understanding MTN Uganda’s point of view and following our additional assessment based on our experience around your rates submission, market research, and reviewing your credentials again, we are aligned to their view. Please note, we are not saying that you are not a good agency, but you are not an ideal partner for MTN in Uganda.”
As Twaha sought to understand the situation and save his dream fully, he learned that M&C Saatchi Abel had instead contracted Creatabuzz Communications, an outfit previously called Limelight and an affiliate of TBWA, an Omnicom company that had previously handled the MTN account in Uganda and across the continent.
And now, M&C Saatchi- we understand- intends to proceed and formalize this arrangement with the new agent, Creatabuzz, together with MTN Uganda, an action intended to arbitrarily exclude CTA Space Limited and breach the arrangement that was formally made.
Legal battle
As a result, CTA Space Ltd have since legally communicated their dissatisfaction to M&C Saatchi and equally tried to initiate an amicable resolution to this detrimental act by M&C Saatchi, but it has fallen on deaf ears.
Further, CTA Space has made several attempts to notify MTN (both at Group and local level) of the matter such that it is resolved in the most justified manner that would protect their code of ethics as a big African telecommunication brand, as well as their legal stand with the competition law that is currently active in Uganda.
In its letter to MTN, CTA Space requests that they (MTN) defer any formalization with M&C Saatchi and the new agent until CTA Space has been compensated for costs incurred, anticipated earnings and injunctive remedies. MTN is yet to respond.
According to the timelines in the agreement between CTA Space and M&C Saatchi, the contract between the local agency and MTN Uganda would be finalised between May and August 2024, as the agency undergoes the transition to scale up resources and meet the business traffic that is expected with an account of MTN’s size.
To CTA Space, an agency that started in 2019 and evolved to provide a full 360 marketing service within 5 years by servicing global brands in the Ugandan market like Bic, MultiChoice, P&G’s Always, Ariel, Downy, Pampers, among others, MTN was still the biggest fish in the sea.
“We saw this (MTN contract) as a huge turning point for the business, and a chance to showcase what we can do with an iconic brand like MTN. So, we did everything right to make sure it comes home!” said Twaha Kakaire CTA Space’s Managing Director.
He added: “M&C Saatchi provided inconsistent reasons to CTA Space for MTN rejecting us – they stated that MTN gave an outright rejection without much intelligence on one occasion, stated that MTN procurement preferred a ‘more established agency’ on another occasion and then presented that MTN based their decision on the rates CTA Space submitted for the talent, on another.”
CTA Space has requested several times that M&C Saatchi provided the audit from MTN, or bridged communication such that MTN could directly contact CTA Space and conduct the assessment, but nothing has been done so far. Instead, M&C Saatchi told CTA Space that MTN had chosen to go with a different agency.
Investigations carried out by this website indicate that the agency which M&C Saatchi has presented to MTN with the intention of formalizing the arrangement, Creatabuzz Communications Limited, is owned by industry-businessman David Case.
Creatabuzz Communications changed its name from ‘Lime Light Limited’ last year in December 2023. Lime Light was the Ugandan affiliate agency of TBWA, who won the MTN bid in 2017 and have serviced the account since then. David Case acquired Lime Light and housed it at TBH Holdings (another agency he owns by majority shareholding) for operations from 2017. TBH Holdings eventually became TBWA’s affiliate agency and David Case managed to retain the account for the second spell of 2021-2023 with TBH Holdings trading as TWBA Uganda, while Lime Light remained dormant.
Twaha said of this matter: “We have reason to believe that David Case persuaded M&C Saatchi individually, and then went on to reawaken ‘Lime Light’ to rename it Creatabuzz Communications so as to replace CTA Space, regardless of the formal arrangement we have with M&C Saatchi and our commitments that led to the success of the pitch.”
According to Twaha, there’s untold procurement injustice that local agencies suffer at the hands of global agencies over big accounts, which needs to be exposed and eradicated such that local business enterprises can stand a realistic chance to growing and contributing to the general economic growth of the country. Watch this space!
September 2023_MOU_MTN_M&CSaatchiGroup[26][45][32][19][7] Chronological Email Trail PRESS RELEASE_M&C Saatchi Abel gearing up to deliver innovative creative solutions to unlock the next phase of growth for MTN Group
Views: 80
