MTN Group to spin off fintech operations in Ghana, Uganda, Nigeria this year

MTN Group has announced plans to separate its financial technology (fintech) operations in Ghana and Uganda by the first half of 2025. However, the telecom giant faces regulatory complexities in Nigeria that could delay a similar move there.

According to a Bloomberg report on Monday, the spin-off is part of a larger restructuring strategy that will pave the way for Mastercard Inc. to acquire a minority stake in MTN’s fast-growing fintech business.

Ralph Mupita, CEO of MTN Group, reaffirmed the company’s commitment to finalizing the deal with Mastercard, which was initially agreed upon in 2023. Speaking to Bloomberg, Mupita noted that while the separation process in Ghana and Uganda is progressing well, Nigeria presents unique regulatory challenges.

“Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita explained.

As part of its broader strategy, MTN is also open to network-sharing deals, aligning with trends seen in the European telecom market, Mupita added.

Bloomberg reports that Mastercard’s investment could reach up to $200 million, with exact details to be disclosed upon the deal’s completion. The fintech unit is currently valued at $5.2 billion, underscoring its significance within MTN’s portfolio.

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MTN initially signed a memorandum of understanding (MoU) with Mastercard in 2023, outlining plans to sell a minority stake in its fintech business. The telecom giant has indicated that definitive investment agreements will be signed soon, pending the completion of customary due diligence.

The group emphasized that the final investment decision remains subject to standard closing conditions, as both companies work toward cementing the deal in the coming months.