MTN Group to spin off fintech operations in Nigeria, Ghana, and Uganda, Mastercard to acquire minority stake

Date: 2025-03-18
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MTN Group has announced plans to spin off its financial technology (fintech) operations in Nigeria, Ghana, and Uganda during the first half of 2025. This reorganization will enable Mastercard Inc., a global payments giant, to acquire a minority stake in these high-growth fintech units. 

The announcement was made by MTN CEO Ralph Mupita during an interview with Bloomberg on Monday. The spin-off is a key step in finalizing a deal struck with Mastercard in 2023, which values MTN’s fintech unit at $5.2 billion. Mastercard is expected to acquire a stake worth up to $200 million as part of the agreement. 

The spin-off process is part of MTN’s broader strategy to streamline its operations and focus on its core telecommunications and fintech businesses. While the spin-off processes are more advanced in Uganda and Ghana, Nigeria presents additional regulatory complexities. 

“Nigeria has a bit more complexity with some more regulatory processes to work through,” said Mupita. Despite these challenges, MTN remains committed to completing the reorganization across all three markets, underscoring its dedication to driving innovation and growth in its fintech operations. 

The deal with Mastercard, announced in 2023, marks a significant milestone for MTN’s fintech ambitions. Under the agreement, Mastercard will support the acceleration and growth of MTN’s payments and remittance services while acquiring a minority stake in the fintech unit. 

“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services,” MTN stated in 2023. 

The signing of definitive investment agreements is expected to occur soon, pending the finalization of customary due diligence and regulatory approvals. 

MTN’s fintech operations have been a key driver of growth for the company, offering a range of services including mobile money, payments, and remittances. By spinning off these operations and partnering with Mastercard, MTN aims to further expand its fintech offerings and enhance its competitive edge in the digital payments space. The collaboration with Mastercard is expected to bring advanced payment solutions, global expertise, and innovative technologies to MTN’s fintech platforms, benefiting millions of customers across Africa. 

In addition to its fintech ambitions, MTN is exploring network-sharing agreements, a strategy already prevalent in European markets. This approach could help the company optimize infrastructure costs, improve service delivery, and enhance network coverage. 

“We remain focused on delivering value to our shareholders and customers,” said Mupita. “This reorganization and partnership with Mastercard will enable us to accelerate our fintech growth and create new opportunities for innovation and collaboration.” 

By:  Nana Appiah Acquaye

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