MTN Group is progressing with plans to divest its fintech operations in Nigeria, Ghana, and Uganda as part of a restructuring initiative that will enable Mastercard to obtain a minority interest in these divisions.
This decision follows a 2023 agreement between MTN and Mastercard, which mandates the telecom company to separate its rapidly expanding financial services sectors in the three countries.
The transaction is anticipated to be completed in the first half of 2025 and is aligned with MTN’s overarching strategy to enhance the value of its fintech ventures, which have emerged as significant contributors to revenue.
In a recent interview with Bloomberg, MTN CEO Ralph Mupita indicated that the restructuring efforts in Ghana and Uganda are advancing well, although Nigeria poses additional regulatory challenges.
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In 2023, MTN and Mastercard formalised a memorandum of understanding outlining a strategic partnership that would see Mastercard acquire a minority stake in MTN Group Fintech. The agreement values MTN’s fintech business at approximately $5.2 billion on a cash- and debt-free basis.
“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 said at the time.
