MTN Group to spin off fintech businesses in Nigeria, Ghana, Uganda for mastercard stake

MTN Group plans to spin off its fintech businesses in Nigeria, Ghana, and Uganda as part of a deal allowing Mastercard to acquire a minority stake

[dropcap]M[/dropcap]TN Group is set to restructure its operations in Nigeria, Ghana, and Uganda by separating its fintech businesses, allowing global payment giant Mastercard to acquire a minority stake in these units.

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This move comes after an agreement made between MTN and Mastercard in 2023, marking a significant step in MTN’s ongoing strategy to capitalise on its rapidly expanding financial services sector.

The deal, expected to be finalised by the first half of 2025, will see MTN unlock value from its fintech operations, which have grown into a substantial revenue stream.

The restructuring will enable Mastercard to become a strategic minority investor in MTN Group Fintech, which is valued at approximately $5.2 billion on a cash- and debt-free basis.

In an interview with Bloomberg on Monday, MTN CEO Ralph Mupita confirmed that the restructuring process was progressing smoothly in Ghana and Uganda.

However, he noted that Nigeria presents more complex regulatory challenges, which could delay the process in the country.

“Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita explained, referring to the additional hurdles that the telecom giant faces in securing the necessary approvals for the restructuring in Nigeria.

MTN and Mastercard formalised a strategic partnership in 2023, outlining the terms of Mastercard’s acquisition of a minority stake in MTN’s fintech operations.

The partnership is aimed at accelerating the growth of MTN’s payment and remittance services across Africa, with a particular focus on leveraging Mastercard’s expertise in financial technology.

MTN had previously stated that the definitive investment agreements would be signed soon, marking a key milestone in the deal’s progression.

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Once finalised, Mastercard’s entry into MTN Group Fintech will help strengthen MTN’s position in the competitive African fintech landscape, while providing the company with the opportunity to expand its offerings and reach.

Quadri Olaitan