NaTCA Fines Africell and Orange: Misapplication of 2022 Act Sparks controversy

By Esther Wright

It has been reported recently by mainstream and social media that the National Telecommunications Communications Authority (NaTCA) has imposed a significant fine of Le500 million (old Leones) each on Sierra Leone’s two largest mobile network operators, Africell and Orange. The fines, issued on Wednesday, October 2, 2024, stem from allegations that both companies have been operating their mobile money services without proper licensing in violation of the National Communications Authority Act 2022.

According to sources within NaTCA, the fines are being levied due to the operators’ alleged deliberate contravention of the 2022 Act. It was further learnt that in a letter addressed to the companies, NaTCA warned of severe consequences for further non-compliance, stating: “Failure to comply with the National Communications Act 2022 would leave the Authority with no alternative, but to conclude that your institutions are illegal entities, and they would be treated as such.”

However, it must be highlighted that this sensitive issue revolves around whether Africell and Orange’s mobile money services fall under the purview of NaTCA’s regulatory authority, as stipulated in the 2022 Communications Act.

The seriousness of the situation is that both companies have been accused by NaTCA of running these services without the requisite licenses from them as the country’s communications regulator. NaTCA has emphasized that its mandate is to regulate all forms of electronic communication services, including mobile money, to ensure compliance with national standards and consumer protection laws.

However, after a thorough investigation and a closer look by this medium into the NaTCA Act and relevant provisions, it appears that the situation is more complex than initially reported. Upon careful review, several important considerations must be taken into account regarding the applicability of the National Communications Act 2022.

Before delving into the nitty-gritty of the Act, this medium is privy to the fact that there have been numerous meetings, correspondences and exchanges between NaTCA, the Bank of Sierra Leone, and mobile money operators like Africell and Orange. Our understanding is that the two regulatory bodies, NaTCA and the Bank of Sierra Leone, had initially agreed to address these concerns jointly, through a specific regulation that would cover both telecommunications and financial services. Mobile money services, which overlap both communications and financial sectors, were expected to be regulated under this joint framework.

It must be underscored that NaTCA’s primary mandate, according to the Communications Act 2022, is to establish technical and performance standards for electronic communications equipment and appliances. The key question here is whether this mandate extends to mobile money services, which, while reliant on telecommunications infrastructure, are fundamentally financial services.

The Act defines “electronic communications operators” and the types of services they are expected to provide. Orange Mobile Finance, for instance, does not seem to fit the traditional definition of an “electronic communications operator” as outlined in the Act. This distinction is crucial, as it may indicate that Orange Mobile Finance falls outside the regulatory authority of NaTCA, as their services primarily involve financial transactions rather than telecommunications.

As the situation stands, the fines imposed by NaTCA have raised concerns about whether mobile money operators like Africell and Orange are being penalized unfairly. From our investigation conducted both operators have maintained that they are in compliance with the applicable financial regulations under the oversight of the Bank of Sierra Leone and that their mobile money services do not fall under NaTCA’s current licensing framework.

What is clear is that there needs to be a more coordinated approach between NaTCA and the Bank of Sierra Leone to resolve the regulatory ambiguity surrounding mobile money services. The joint regulation that was initially proposed may provide the clarity and framework needed to avoid further conflicts and ensure that the rapidly growing mobile money sector remains compliant with all legal and technical standards.

As mobile money services continue to play a vital role in the country’s financial inclusion efforts, resolving this regulatory dispute is crucial. The hope is that dialogue between NaTCA, the Bank of Sierra Leone and the mobile operators will lead to a solution that promotes both compliance and the continued growth of these essential services.