In the cutthroat world of advertising, few contracts carry as much weight as MTN Uganda’s multi-million-dollar account. For any agency, securing this deal is akin to striking gold, with potential earnings of up to UGX 300 million (USD 80,000) per month. However, recent developments have revealed a darker side to the battle for this lucrative contract—a side where global giants wield their influence to muscle out local agencies, raising serious concerns about fairness, transparency, and the future of Uganda’s advertising industry.
At the center of this controversy is CTA Space Ltd, a homegrown Ugandan agency, and M&C Saatchi Abel, the South African arm of the global M&C Saatchi Group. What started as a promising partnership has turned into a tale of betrayal, alleged manipulation, and a legal battle that could reshape the dynamics of the advertising landscape in Uganda.
The David vs. Goliath Saga
CTA Space Ltd was founded in 2019 by Twaha Kakaire, a young entrepreneur with a vision to build a full-service advertising agency capable of competing on a global scale. Within just five years, CTA Space had established itself as a key player in Uganda’s marketing communications industry, handling campaigns for international brands like Bic, MultiChoice, and P&G.
The opportunity to work with MTN Uganda was a dream come true for Kakaire and his team. The telecommunications giant’s extensive reach and influence made the account the most coveted in the industry. In 2023, when MTN Uganda launched its thematic campaign, “Together, we’re unstoppable,” CTA Space saw a perfect alignment with their mission of empowering brands and businesses. Eager to secure the contract, they partnered with M&C Saatchi Abel to pitch for the MTN account across Africa.
On September 8, 2023, CTA Space Ltd and M&C Saatchi Abel signed a Memorandum of Understanding (MOU), outlining the terms of their collaboration for the pitch process. Under this agreement, CTA Space was to serve as the local affiliate for the MTN Uganda account, should M&C Saatchi Abel win the pitch.
A Promising Start Turns Sour
Initially, everything seemed to be going according to plan. M&C Saatchi Abel won the pitch, with CTA Space Ltd playing a crucial role by contributing its credentials and rate cards. The Ugandan agency was set to handle the local operations, a significant milestone in its growth trajectory. However, the celebrations were short-lived.
On April 22, 2024, M&C Saatchi Abel informed CTA Space that they had been appointed as the new marketing services partner for all MTN Group operating companies in Africa, effective January 1, 2025. According to the plan, CTA Space Ltd would be directly contracted by MTN Uganda to manage the local account. But this partnership soon began to unravel.
Without warning, M&C Saatchi Abel decided to replace CTA Space Ltd with CreateAbuzz Communications, another agency with no prior involvement in the pitch process. The decision was communicated via an email from Nival Maharaj, M&C Saatchi Abel’s new business project director, on June 28, 2024. Maharaj claimed that MTN Uganda’s procurement team had rejected CTA Space due to concerns about the agency’s scale and capabilities—a claim that CTA Space Ltd vehemently disputes.
The Truth Behind the Rejection
The email from M&C Saatchi Abel stated: “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. MTN wants to start off with an agency that is more established.”
However, CTA Space Ltd’s own investigations suggest that this explanation was not only misleading but also part of a deliberate strategy to exclude them from the contract. According to sources within the industry, M&C Saatchi Abel had already made arrangements to work with CreateAbuzz Communications long before they informed CTA Space of the so-called rejection.
This revelation raises serious questions about the transparency of the selection process and the motives behind M&C Saatchi Abel’s decision. For CTA Space Ltd, this was more than just a business setback—it was a betrayal of trust.
Legal Action and the Fight for Justice
Feeling wronged, CTA Space Ltd took the matter to the top. Kakaire reached out to Jacques Burger, CEO of M&C Saatchi Abel, seeking clarification and redress. But Burger’s response only added insult to injury. He dismissed CTA Space’s contributions to the pitch and aligned with MTN Uganda’s purported view that the local agency was not suitable for the account.
“The MOU doesn’t commit to any obligations from ourselves beyond putting yourselves forward as our affiliate partner in the Uganda market,” Burger wrote. “It does not guarantee a contract or success, nor does it make any financial commitments.”
Frustrated by the lack of transparency and the apparent disregard for their efforts, CTA Space Ltd has since initiated legal proceedings against M&C Saatchi Abel. The agency is seeking compensation for the costs incurred during the pitch process, anticipated earnings, and injunctive remedies to prevent M&C Saatchi from formalizing their arrangement with CreateAbuzz Communications.
CTA Space Ltd has also reached out to MTN Group, both at the local and regional levels, urging the telecom giant to halt any further negotiations with M&C Saatchi and the new agency until the matter is resolved fairly. However, MTN has yet to respond to these appeals.
The Bigger Picture: Local Agencies at a Disadvantage
The battle between CTA Space Ltd and M&C Saatchi Abel is not just a dispute between two agencies—it is a reflection of a broader issue within the advertising industry. Local agencies in Uganda and across Africa often find themselves at a disadvantage when competing against global giants for major contracts. Despite their talent, creativity, and local knowledge, these agencies are frequently overshadowed by the sheer size and influence of international firms.
For CTA Space Ltd, the loss of the MTN Uganda account is a significant blow, but it is also a wake-up call for the entire industry. As Kakaire pointed out, “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 so that local businesses can stand a realistic chance of growing and contributing to the general economic growth of the country.”
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