MTN Finalising Nigeria, Uganda Fintech Spinoffs
MTN Group is in the final stages of separating its fintech businesses in Nigeria and Uganda as part of a broader restructuring strategy that will allow strategic investors, including Mastercard, to acquire minority stakes in its financial technology operations.
Speaking during the company’s Capital Markets Day, MTN Group CEO, Ralph Mupita, explained that the process is complex due to the need to preserve value.
“The separations are complex as we have to minimise value leakage,” Mupita said. “On fintech, we are open to minority shareholding all the way up to 30%; we are not driven by IPO timelines.”
As part of its growth strategy, MTN is also pursuing new partnerships and transactions to strengthen its fintech ecosystem. Earlier this week, the telecommunications giant announced a collaboration with Ant Group’s Alipay unit to enhance its mobile money platform, MoMo.
The restructuring is a key requirement for completing the agreement MTN signed with Mastercard in 2023. According to Mupita, the company may also explore additional transactions involving minority investors in its fintech subsidiaries.
The move comes as competition intensifies across Africa’s rapidly expanding mobile money sector. Meanwhile, Airtel Africa, led by Indian billionaire Sunil Mittal, is reportedly preparing its mobile money business for an initial public offering that could value the unit at up to $10 billion.
With a young and increasingly digital population across the continent, mobile money services have become a crucial tool for bridging gaps in traditional banking and financial services, creating significant opportunities for telecom operators.
According to MTN Fintech CEO, Serigne Dioum, the fintech division generated R28.8 billion (approximately $1.7 billion) in revenue last year and processed around $500 billion in transactions across the 14 markets where it holds fintech licenses.
Dioum also revealed that MTN intends to expand its regulatory approvals in selected markets to enable lending services and allow the company to provide credit directly from its balance sheet.
In Nigeria, MTN’s current license restricts services such as international remittances, lending and certain payment solutions. According to Dioum, this limitation has allowed fintech competitors such as OPay and PalmPay to gain market share.
Despite the competition, Dioum believes Nigeria remains a major growth opportunity. He disclosed that MTN is working to expand its banking licence capabilities in the country and expects to launch its Alipay-powered platform within the coming weeks.
