MTN Group is pushing ahead with plans to separate its fintech businesses in Nigeria, Ghana, and Uganda, paving the way for Mastercard to acquire a minority stake.
Why it matters
The restructuring, expected to be completed in H1 2025, will allow MTN to unlock more value from its fast-growing fintech division, valued at $5.2 billion.
State of play
- The deal, originally struck in 2023, required MTN to spin off its fintech units before Mastercard could invest.
- CEO Ralph Mupita told Bloomberg that Ghana and Uganda are in advanced stages, but Nigeria faces regulatory hurdles.
- “Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita said.
By the numbers
- MTN’s fintech arm saw mobile money transactions surge 35% in constant currency terms, hitting over $320 billion.
- Mastercard’s planned investment of up to $200 million is expected to accelerate growth.
The big picture
Beyond fintech, MTN is eyeing network-sharing agreements to cut infrastructure costs—a model widely used in Europe.
Yes, but: Financial challenges remain. MTN posted a R9.59 billion loss for 2024, far worse than analysts’ estimates of R3.87 billion.
What’s next
Despite setbacks, MTN is increasing its dividend, with shareholders set to receive R3.45 per share—exceeding market expectations. Shares rose 3.4% in early trading on the Johannesburg Stock Exchange.
Source: Techeconomy
