MTN Group is advancing plans to spin off its financial technology units in Nigeria, Ghana and Uganda to pave way for Mastercard’s minority investment in the rapidly growing segment.
The restructuring is expected to be completed in the first half of the year and support MTN’s broader strategy to unlock value in its fintech business and position it for further expansion.
The Johannesburg-based telecom giant has been expanding its financial services footprint across Africa by leveraging mobile technology to bridge gaps in digital payments, banking, and remittances.
MTN’s fintech unit has recorded substantial growth in recent years with the company processing over $320 billion in mobile money transactions, a 35% year-on-year increase in constant currency terms.
The planned separation is a key requirement for Mastercard’s anticipated $200 million investment, which will see the fintech arm valued at approximately $5.2 billion.
According to MTN Group CEO Ralph Mupita, the restructuring process is more advanced in Uganda and Ghana, while Nigeria presents a more complex regulatory landscape that requires additional processes before the separation is finalized.
MTN’s fintech expansion aligns with a broader trend of telecom operators diversifying into digital finance, capitalizing on the high adoption of mobile money across the continent.
The company has also expressed openness to network-sharing agreements, following a model increasingly adopted in European markets to improve efficiency and service delivery.
Beyond fintech, MTN continues to strengthen its financial position, having declared a dividend payout of 3.45 rand per share for 2024, surpassing analysts’ estimates.
The company has also set a higher dividend target of at least 3.70 rand per share for the current financial year, signaling confidence in its growth trajectory despite macroeconomic pressures.
With the separation of its fintech business on track, MTN is positioning itself to scale its digital financial services across Africa, enhance strategic partnerships, and drive long-term value for investors and customers alike.
