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MTN Group Ltd. is set to separate its financial technology divisions in Ghana, Nigeria, and Uganda within the first half of the year, a move that will pave the way for Mastercard Inc. to acquire a minority stake in its rapidly expanding fintech business.
Strategic Restructuring for Fintech Growth
The Johannesburg-based telecom giant is advancing the spinoff as part of its 2023 agreement with Mastercard, according to CEO Ralph Mupita. This restructuring will allow MTN’s fintech division to operate independently, driving investment and expansion across Africa’s fast-growing digital finance sector.
With a young, mobile-first population, Africa has seen a surge in mobile-based financial services. MTN’s mobile-money transactions grew by 35% in constant currency, exceeding $320 billion. The Mastercard investment, estimated at $200 million, values MTN’s fintech unit at approximately $5.2 billion. While Uganda and Ghana are progressing smoothly with the separation, Nigeria’s regulatory complexities present additional hurdles, Mupita noted.
Expanding Market Strategy and Growth Prospects
Beyond fintech, MTN is exploring network-sharing agreements, a trend gaining momentum in European markets, to optimize infrastructure use and enhance service delivery efficiency.
As Africa’s largest telecom provider by revenue, MTN continues to demonstrate strong financial performance. The company announced a dividend of 3.45 rand per share for 2024, exceeding analyst forecasts 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 fintech expansion and strategic partnerships at the forefront, MTN is positioning itself as a dominant player in Africa’s evolving digital economy, reinforcing its commitment to regulatory compliance, digital payments, and financial inclusion.
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