MTN to Unlock Value from Fintech Business with Mastercard Partnership

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MTN Group is pushing forward with plans to separate its fintech businesses in Nigeria, Ghana, and Uganda, paving the way for Mastercard to acquire a minority stake in the units. This move follows a 2023 agreement between MTN and Mastercard, which requires the telecom giant to spin off its rapidly growing financial services divisions in these three markets.

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The deal, expected to be finalised in the first half of 2025, is part of MTN’s broader strategy to unlock value from its fintech operations, which have become a key revenue driver. According to MTN CEO Ralph Mupita, the restructuring process is progressing smoothly in Ghana and Uganda, but Nigeria presents additional regulatory hurdles. “Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita said in an interview with Bloomberg

The agreement between MTN and Mastercard values MTN’s fintech business at approximately $5.2 billion on a cash- and debt-free basis. As part of the deal, Mastercard will acquire a minority stake in MTN Group Fintech, supporting the acceleration and growth of MTN’s fintech business’s payments and remittance services. “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 in a statement.

The deal is subject to customary closing conditions, including final due diligence, and is expected to be completed in the near term. This move is part of MTN’s efforts to unlock value from its fintech operations and position itself for further growth in the digital financial services sector.

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