Every Adman and for that matter, advertising agency, dreams of basically two things⏤ doing great game-changing campaigns/things and making a lot of money while at it.

This is because usually big-ticket clients not only have an impact on the bottomline⏤ they typically have larger advertising budgets, which means more revenue potential for the agency⏤ but they also come along with prestige and reputation, create more creative and learning opportunities as well as provide ongoing work and stable business relationships, which create long-term business sustainability. Overall, while the competition for big clients can be fierce, the potential rewards in terms of financial gain, reputation enhancement, creative opportunities, and professional growth make them highly desirable for advertising agencies. 

So, when Twaha Kakaire, the Managing Director of CTA Space Ltd, a Kampala-based creative, digital & experiential marketing agency was invited to partner with South Africa-based M&C Saatchi Abel Proprietary Limited (M&C Saatchi Abel) for purposes of participating in a Request for Proposals (RFP), also known as pitching, for the MTN Group communications account, he was nothing but excited.

With MTN Uganda said to be paying in the region of UGX300 million per month in advertising agency retainer fees, there was every reason to be excited.  

Indeed between 8th of September 2023 and  22nd September 2023, a Memorandum of Understanding was entered between M&C Saatchi Abel and CTA Space Ltd as the OpCo Marketing Agency for Uganda. This is because while M&C Saatchi Abel had been shortlisted as one of the bidding companies for the MTN Group advertising account, it was important to have a ground presence in all 19 markets where the MTN Group operates, including Uganda. Accordingly, CTA Space Ltd was onboarded as the Uganda OpCo Marketing Agency partner for M&C Saatchi Abel. 

If M&C Saatchi Abel won the deal, CTA Space Ltd would naturally be the partner agency for the Ugandan market. For this future potential benefit, CTA Space Ltd would have to accept to be bound by various exclusivity clauses. 

“The Opco Marketing Agency (CTA Space Ltd) agrees to participate exclusively with the Group Marketing Agency partner in this RFP process for the duration stated in Section 4: Timelines. If successful, the Group Marketing Agency agrees to enter formal negotiations with the Opco Marketing Agency for the enlisted services required by MTN per country and/or between the Opco Marketing Agency and the local MTN Opco directly,” reads part of the MoU signed by Jason Harrison, the Co-Founder and Chief Operating Officer of M&C Saatchi Abel.

During the pitching period that would last up to April 2024 when the eventual winner would be announced, CTA Space was also forbidden from participating in pitching for any business with any other telecommunication company that was seen as a direct competitor to MTN Uganda. They also could not participate in the MTN RFP process with any other agencies that were seen as direct competitors in the pitch process for this duration. The competing RFP agencies are TBWA (Omnicom)⏤ the incumbent agency⏤ FCB (InterPublic Group), Havas (Vivendi) and Publicis (Publicis Groupe).

As required by the MoU, CTA Space went ahead to provide ratecards and its credentials to M&C Saatchi Abel to form part of the pitching deck. 

The big win and the big heartbreak

Subsequently, M&C Saatchi Abel emerged successful in the pitch.

In a 22nd April 2024 email to CTA Space Managing Director and the rest of the other country teams, Jacques Burger the M&C Saatchi Abel CEO acknowledged the role played by each of the partner agencies in the win.

“Hi Team, I’m delighted to confirm that M&C Saatchi Abel, in partnership with all our African affiliate agencies (that’s you!), have been appointed as the new marketing services partner across all MTN Group operating companies, effective 1st January 2025. We are exceptionally excited about this opportunity to partner with all of you in delivering world-class solutions to this incredible brand and business,” Jacques wrote to all agency partners, including CTA Space.

“We will be in touch with each company individually shortly to outline the next steps and proposed timing for us to get together and plan for how we onboard this significant new client, but for now, I wanted to say THANK YOU for all your hard work to date and a MASSIVE CONGRATULATIONS to each of you. I hope that you will find an opportunity to celebrate in style with your teams and we look forward to connecting soon,” Jacques further wrote. 

“Well done everyone⎯ we cannot wait to embark on this exciting journey with all of you,” Jacques concluded.

When the celebrations were over, Twaha Kakaire and his team, started readying themselves for the big day they had always waited for. Work went into reviewing and strengthening their talent complement as they waited for news on when the formal negotiations with MTN Uganda, as covenanted in the MoU and promised in JAcques’ congratulatory message, would begin.

But this never came. Not in April or May.

Then towards the end of June⏤ precisely on 28th June 2024, came the shock. 

In an email, Nival Maharaj, the M&C Saatchi Abel New Business Project Director wrote to CTA Space informing them that they had been instead rejected by the local MTN Uganda team.

“Thank you for all your patience, support and feedback throughout this lengthy pitch process. As we now wrap up final loose ends, we are in a position to share the outcome of our engagements. 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,” Nival wrote.

Nival added that concerns had been raised by the MTN Team over “the scale of CTA Space and current capability and quality to deliver against 360-degree work”.

“Even with 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,” Nival delivered the bombshell.

CTA Space frenziedly wrote back questioning the transparency around the MTN decision and why they had not been made privy to these discussions as was promised in the MoU. CTA Space also questioned the transparency around which their partner M&C Saatchi Abel had conducted the matter.

“I have concerns of my own, on how MTN assessed CTA Space after bidding and winning,” Twaha Kakaire wrote in a 04th July 2024 email. 

“We would like to inquire into the evaluation criteria used to assess, post-award. Our understanding is that CTA Space, like any other agency currently in Uganda (apart from the agency that has been running the account), would have to scale up resources to manage the level of traffic and size of the business of MTN’s magnitude. We expect the same to be happening with the other OpCo agencies in other markets as well, which we don’t particularly think is a strange thing. We would also like to understand why the assessment and/or evaluation was happening without our knowledge. We would have otherwise provided the necessary (required information) had we been contacted,” the CTA Space Managing Director wondered. 

“It was our understanding that the scale-up was an agreed mode of operation so as to get ready for August when work actually starts. It was also our understanding that ALL assessments and evaluations were concluded before the press release back in April (2024). Understanding how scale was gauged is good for us, as it will give us a chance to respond to MTN with those elements directly, given that we’ve shared samples of our 360 work and are confident of our capability to deliver the required quality against 360-degree work,” the CTA Space Managing Director further said. 

CTA Space also proposed a meeting between all the parties to have a “fair hearing”, but this fell on deaf ears.

But the meeting never came. Instead, Jacques Burger, the M&C Saatchi Abel CEO, wrote back, delivering the last punch.

In the 11 July 2024 email, Jacques Burger told CTA Space that while there was an MoU binding the two parties to work together on the pitch, this 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,” he bluntly told CTA Space.

He also denied and reminded CTA Space that they in any case, not had any material role in the winning of the contract.

“With regards to the pitch itself, it also needs to be noted that 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 because of incorrect information supplied, and you submitted a credentials document. It is important to note this as you have not invested any creative or strategic pitch hours towards the pitch opportunity,” Jacques added. 

“Once M&C Saatchi Abel was successful in the pitch, we again clearly communicated to yourselves that we would be going into a negotiation period with MTN around contracting – in fact we specifically asked you not to communicate or share the outcome of the pitch in market without our approval as contracting had not been concluded yet and anything could still happen”. 

“You were also aware that MTN was still in the process of evaluating your rate card and to date, you received no approval on the rate card submitted – a key deliverable that would require approval prior to considering appointment. Therefore, I fail to understand, given this context, how you could have incurred any costs or have made any commitments, financial or otherwise, in the absence of a contract, agreement, agreed rates, scope of work etc etc. I am sure you can appreciate my view that any such decisions would have been premature and dare I say, irresponsible – understandably, therefore, we cannot be held liable for any of these costs”

“The MTN Opco in Uganda did a thorough review of your credentials and your rates and determined that you are not a suitable partner for them in that market. The contract dictates that they (MTN) as an in-market Opco will contract directly with an affiliate in-market and therefore they ultimately have the say in the matter of appointing the affiliate – in fact, in all pitches, as you know, the client has the final say on agency appointments and nothing is guaranteed until a contract has been signed. Having said that, we have spent time understanding their point of view and following our own additional assessment based on our experience around your rates submission, market research and reviewing your credentials again, we are aligned with their view. Please note, we are not saying that you are not a good agency, but just that you are not an ideal partner for MTN in Uganda,” Jacques further dug in.

“I appreciate that you are disappointed with this outcome, but a very clear and professional process has been followed and I need to ask you respectfully to now accept this decision – there is no room for further engagement on this matter as a decision has been taken and MTN will not be contracting with yourselves as the affiliate in Uganda. I appreciate your understanding and trust that we can put this matter to rest now and move forward with our respective business endeavours,” Jacques concluded. 

Old wine in a new bottle⏤ M&C Saatchi selects David Case’s re-named agency

What has further riled CTA Space is that M&C Saatchi Abel, has gone ahead to select Limelight Limited, trading as TBWA Uganda and an affiliate of TBWA, an Omnicom company, that previously held the MTN Uganda advertising agency account since 1st July 2017. On November 23rd, 2020, the deal was further renewed, leading up to the fresh pitch in September 2023.

Interestingly, Limelight Uganda on 21st December 2023 changed its name to Creatabuzz Communications Limited. This followed the board resolution of 01st October 2023.

Limelight Limited is owned by David Case following his acquisition of 95% shareholding previously held by Nigel Sutton, the agency’s founder. Limelight was founded in 1997. 

David Case also majority owns TBH Holdings (formerly Moringa Limited) another communications agency that shares offices with Limelight Limited (now Creatabuzz Communications Limited). 

TBH Holdings was formerly named Moringa Limited (an advertising agency founded in 2003). For a long time, Moringa was the Uganda affiliate of the renowned global advertising agency Ogilvy and was locally known as Moringa Ogilvy until 2014, when the affiliation didn’t work, prompting David Case and his Partner Peter Magona, to rename Moringa to TBH Holdings in April 2014.

It is believed it was during the subsistence of of the Moringa-Ogilvy relationship that David Case got to know Jacques Burger who was between 1998 and 2008, the Managing Director Ogilvy & Mather South Africa. Jason Harrison also worked for Ogilvy in the United Kingdom between January 2006 and October 2011.

It appears, that having realised that TBWA (Omnicom) had lost the MTN Group account, David Case leveraged both his past relationships at Ogilvy as well as his great knowledge and experience of the MTN account to strike up a new relationship with the M&C Saatchi Abel to ensure that the MTN account remains at his Plot 41 Luthuli Avenue, after all, Limelight Limited (trading as TBWA Uganda), had had a successful relationship with MTN Uganda. 

It shall be remembered that TBWA Uganda, has in the past 5 years executed several award-winning campaigns for MTN Uganda. Over the last two years, MTN Uganda has also witnessed some big market gains, with the help of TBWA Uganda.

When the CEO East Africa Magazine reached out to David Case to comment on the matter and the ongoing dispute between CTA Space and M&C Saatchi, he said: “I have not been personally involved in any negotiations with M&C Saatchi Abel. To purport that I have any influence over MCSA is at best overreaching and at worst, disingenuous”. 

“M&C Saatchi Abel won the global MTN contract and are free to affiliate with any agency in any market and we are privileged that they have selected to partner with Creatabuzz Communications. Creatabuzz has not been involved in any illicit or untoward dealing with MCSA,” he added.

CTA Space moves to sue M&C Saatchi Abel

We now understand that following the breakdown of peace talks between CTA Space and M&C Saatchi Abel, the former is moving to sue and has sent the latter a notice-to-sue letter.

When this reporter asked Jacques Burger to comment on the dispute and a notice-to-sue by CTA Space, he also dismissed the allegations of improper conduct.

“We have received the letter in question and we reject any allegations of improper conduct on our part outright.  As an agency with a strong reputation of integrity, we of course take these allegations very seriously and our lawyers have responded to the notice-to-sue earlier today. Unfortunately, as this is now an ongoing legal matter, I cannot comment any further at this stage,” he told the CEO East Africa Magazine.

CTA Space has also reportedly written to MTN Uganda, appealing them to intervene in the matter, something that has not gone down well with M&C Saatchi Uganda, prompting their lawyers to write to CTA Space.

In a 23rd July 2024 letter, Matthew Wilson, a lawyer for M&C Saatchi Abel wrote to CTA Space’s lawyers, denying all the allegations by CTA Space. 

“My client takes great umbrage at the allegations made by your client that it has acted in breach of its (alleged) fiduciary duty to your client and that it has made a misrepresentation to your client. Specifically, my client denies that it owed your client any fiduciary obligations,” Mathew Wilson wrote. 

He further argued that while there was an MoU between the two parties, the said MoU was for bidding purposes only.

“My client (M&C Saatchi Abel) did not, nor could it have at the time when the MOU was concluded: guarantee your client’s (CTA Space) appointment by MTN Uganda; agree the specific services which your client would render to MTN Uganda; and/or agree a price/ cost at which these services would be charged by your client to MTN Uganda”.

“To this end, my client, subsequent to its appointment by MTN as its global marketing partner, duly engaged with MTN Uganda and MTN’s procurement arm in relation to having your client appointed as MTN Uganda’s local service provider. However, following a joint review of your client’s submission against the required remit in the market, your client was rejected as a service provider for reasons which have already been provided to your client”. 

The M&C Saatchi Abel lawyers further argued that the MTN/M&C Saatchi Abel contractual ecosystem was designed in such a manner that any agreements in the local territories are to be concluded directly between the local MTN company in question (i.e. MTN Uganda) and the relevant local agency and yet no such agreement was ever concluded between MTN Uganda and CTA Space.

“Put simply, your client was never formally engaged by MTN Uganda as its local agency/service provider and my client fulfilled its obligations to your client by nominating it as a local service provider for the territory of Uganda to MTN, providing reasons for such nomination and disclosing your client’s rate card. My client accordingly denies that it has breached any duty to your client or made any misrepresentations to your client. My client further denies that it is liable to your client for any damages or compensation of any nature whatsoever. Notwithstanding the aforegoing and the fact that my client has advised your client in writing that your client will not be appointed as a local agency/service provider to MTN Uganda, your client has sought to engage with MTN Uganda directly (in a letter of even date), alleging that my client had “irregularly” appointed another agency and that my client intended to “arbitrarily exclude” your client from contracting with MTN Uganda, whilst being “in breach” of its obligations to your client. 

Please note that there is no basis whatsoever for your client to be contacting MTN Uganda or any entity within the MTN Group in that, on your client’s own version, any agreement which it alleges to have had was with my client and not MTN. Furthermore, my client has been instructed by MTN that it does not wish to engage with your client in respect of this matter and that any communications by yourselves or your client should be directed to my client as the managing agency. 

We are thus instructed to demand, as we hereby do, that your client immediately ceases and desists from making any further contact with MTN Uganda or any other entity within the MTN Group,” the lawyers further wrote. 

“Finally, your client should be advised that my client (as part of the M&C Saatchi Global Group) takes any allegation or insinuation of improper conduct extremely seriously and my client will not hesitate to take formal action to protect and preserve its good name and reputation and/or to seek appropriate compensation should its good name and reputation be unlawfully tarnished or threatened.

My client’s rights are fully reserved. Specifically, but without limitation, my client reserves its rights in relation to the statements which have been made regarding its conduct in your letter dated 16 July 2024 and your client’s letter to MTN of even date. Should your client institute any action proceedings against my client, I hold firm instructions from my client to vigorously defend the same. Please be guided accordingly,” Mr. Wilson Mathew concluded.

It remains to be seen whether this dispute will have any impact on the planned contracting between MTN Uganda and Createabuzz Communications Limited and if at all CTA Space will be heard at all.