MTN group to spin off Fintech operations in Nigeria, Ghana, Uganda

MTN Group has unveiled plans to separate its financial technology (fintech) businesses in Nigeria, Ghana, and Uganda by the first half of 2025.

The restructuring is part of a broader initiative to streamline operations and finalize a deal allowing global payments giant Mastercard Inc. to acquire a minority stake in MTN’s high-growth fintech units.

MTN CEO Ralph Mupita disclosed this development on Monday in an interview with Bloomberg, highlighting the company’s commitment to unlocking value in its rapidly expanding fintech division.

According to Mupita, while the fintech separation process is more advanced in Ghana and Uganda, Nigeria presents additional regulatory hurdles that must be addressed before completion.

“Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita noted, adding that MTN remains focused on ensuring a successful spin-off across all three markets.

The deal with Mastercard, first announced in 2023, values MTN’s fintech unit at approximately $5.2 billion, with Mastercard set to acquire a minority stake worth up to $200 million. The agreement includes commercial partnerships aimed at accelerating digital payments and financial services across MTN’s operating markets.

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Beyond fintech, MTN is exploring network-sharing agreements to optimize infrastructure costs and enhance service delivery. This approach, already widely adopted in European markets, is expected to improve MTN’s operational efficiency in Africa, where telecommunications infrastructure investments remain capital-intensive.

Industry analysts believe that network-sharing deals could help MTN mitigate rising costs, particularly in markets where macroeconomic instability and foreign exchange challenges affect profitability.

Commenting on MTN’s fintech spin-off strategy, financial analyst Peter Mabaso of Johannesburg-based African Market Insights stated:

“This move aligns with MTN’s long-term strategy of unlocking value from its digital services business. By separating fintech operations, MTN can attract more strategic investors and focus on scaling mobile money and digital payment solutions across Africa.”

Similarly, telecoms expert Dr. Mary Onyekachi noted that MTN’s approach reflects broader industry trends:

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“African telecom operators are increasingly looking beyond traditional voice and data services. Fintech presents a massive growth opportunity, and MTN’s partnership with Mastercard signals its intent to dominate the digital financial services space.”

Despite facing economic headwinds, MTN remains optimistic about its financial performance. The company recently released its full-year financial results for 2024, reporting a 9.59 billion rand loss—a figure significantly higher than the estimated 3.87 billion rand loss projected by analysts.

Nevertheless, MTN declared a dividend of 3.45 rand per share for 2024 and outlined plans to increase payouts to at least 3.70 rand per share in the current financial year, signaling confidence in its long-term growth trajectory.

As MTN progresses with its fintech separation and strategic realignment, stakeholders will closely monitor regulatory developments, particularly in Nigeria. If successful, the move is expected to reinforce MTN’s position as a leading player in Africa’s digital financial ecosystem while unlocking new growth opportunities for investors and customers alike.

With Mastercard’s backing and a clear fintech roadmap, MTN’s evolution into a digital-first company is set to redefine the African telecommunications and financial services landscape in the coming years.