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MTN Boosts Fintech in Africa, the Largest Wireless Carrier.

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Article Summary

TLDR:

  • MTN Group Ltd. increased fintech transaction volumes by a third last year.
  • MTN now has 72.5 million active users of its mobile-money services and recently closed a deal with Mastercard Inc. valuing the business at $5.2 billion.

MTN Group Ltd. reported increased fintech transaction volumes by a third last year, establishing itself as the biggest wireless carrier in Africa. The company’s mobile-money services, known as MoMo, have attracted 72.5 million active users, with a recent deal with Mastercard Inc. valuing the business at $5.2 billion. MTN CEO Ralph Mupita mentioned plans for a second round of minority investment in the fintech business, open to selling up to 30% of the business at the right valuation.

Africa’s youthful, tech-savvy population is utilizing mobile phones to access services like banking, creating a lucrative space for wireless carriers like MTN to tap into the fintech sector. While rising transaction volumes in the fintech sector are promising, inflation and the devaluation of the Nigerian naira impacted MTN’s profit, resulting in a significant drop of 79% to 4.09 billion rand.

MTN is proactively working on enhancing network capabilities across its markets, allocating significant investments towards improving network infrastructure. The company declared a final dividend of 3.30 rand per share and has plans to connect 10 African countries through a terrestrial cable project. Initiatives such as structural separation of the fiber business and renegotiation of tower contracts in Nigeria remain key priorities for MTN’s growth and expansion in the region.


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