MTN to Spin Off Fintech Units as Mastercard Invests in Digital Expansion
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MTN Group Ltd. is set to separate its financial technology divisions in Ghana, Nigeria, and Uganda during the first half of the year, paving the way for Mastercard Inc. to acquire a minority stake in its high-growth fintech business.
Strategic Restructuring for Expansion
The Johannesburg-based telecom giant is moving forward with the spinoff as part of a 2023 agreement with Mastercard, according to CEO Ralph Mupita. The restructuring will allow the fintech division to operate independently, facilitating investment and expansion in Africa’s rapidly growing digital finance sector.
With a young and tech-savvy population driving mobile adoption, Africa has witnessed a surge in mobile-based financial services. MTN’s mobile-money transactions soared by 35% in constant currency, surpassing $320 billion. The Mastercard investment, estimated at $200 million, will value the fintech unit at approximately $5.2 billion. While the separation process is well advanced in Uganda and Ghana, Nigeria’s regulatory landscape presents additional complexities, Mupita noted.
Growth Prospects and Market Strategy
Beyond fintech, MTN is also exploring network-sharing agreements, a trend gaining traction in European markets, to optimize infrastructure use and enhance service delivery.
As Africa’s largest telecom provider by revenue, MTN continues to deliver strong financial performance. The company announced a dividend of 3.45 rand per share for 2024, surpassing analyst expectations of 3.35 rand. Additionally, MTN has committed to increasing dividends in the coming financial year, targeting a minimum of 3.70 rand per share.
With its fintech ambitions and strategic partnerships, MTN is positioning itself as a key player in Africa’s evolving digital economy.
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