MTN Group Ltd., Africa’s leading telecommunications giant, is set to spin off its fintech operations in Nigeria, Ghana, and Uganda in the first quarter of 2025, paving the way for Mastercard Inc. to acquire a minority stake in these high-growth units.
CEO Ralph Mupita confirmed to Bloomberg that the Johannesburg-based company is restructuring to finalize a deal inked with Mastercard in 2023, capitalizing on the continent’s booming mobile money market.
The separation of MTN’s fintech businesses is driven by Africa’s young, tech-savvy population, increasingly reliant on mobile phones to access banking and other services. This trend has fueled rapid growth in the fintech sector, with MTN reporting a 35% surge in mobile-money transactions reaching over $320 billion in constant currency terms.
The Mastercard investment, potentially valued at up to $200 million, pegs the fintech unit’s worth at $5.2 billion, with final details to be revealed upon deal closure. “Progress varies across the three markets. Uganda and Ghana are advancing smoothly, while Nigeria faces additional regulatory hurdles, adding complexity to the timeline” Mupita noted.
The move underscores MTN’s strategic focus on unlocking value from its fintech arm, a cornerstone of its growth amid rising demand for digital financial solutions.
Beyond fintech, MTN is exploring network-sharing agreements, mirroring trends in Europe, to optimize infrastructure and cut costs. Financially, the company outperformed expectations, declaring a 2024 dividend of 3.45 rand ($0.19) per share, surpassing the 3.35 rand analyst consensus compiled by Bloomberg.
Looking ahead, MTN has committed to a minimum dividend of 3.70 rand per share for the current fiscal year, signaling confidence in its robust outlook.
