MTN Group has commenced a large-scale restructuring of its fintech and mobile money operations across key African markets, as part of its long-term strategy to unlock shareholder value and position its digital businesses for independent growth.
The telecommunications giant has begun separating its fintech businesses in countries like Nigeria, Ghana, and Uganda.
This follows a $200 million agreement with Mastercard, which involves a minority investment in MTN’s fintech arm.
The move is part of the company’s broader effort to prepare its high-growth digital finance operations for public listings and strategic partnerships.
Mastercard’s investment values MTN’s fintech unit at $5.2 billion and includes a commercial agreement to expand payments and remittance services across Africa.
“This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services,” MTN said.
Ghana and Uganda Lead the Fintech Spin-Off
In Ghana, MTN has already merged its MobileMoney Limited operation into a new entity dubbed “New FinCo.”
This entity will eventually be listed on the Ghana Stock Exchange. MTN is implementing a trust mechanism to ensure that current shareholders benefit from any future valuation gains.
The restructuring complies with Ghana’s Payment Systems and Services Act, which requires at least 30% local ownership of electronic money issuers.
In Uganda, shareholders have approved the creation of a separate fintech company, majority-owned by MTN Group Fintech Holdings B.V. The plan includes listing the new business on the Uganda Securities Exchange within the next 3 to 5 years.
This is in line with Uganda’s National Payments Systems Act and received 99.9% shareholder approval at an extraordinary general meeting held on July 22.
However, the restructuring process in Nigeria—one of MTN’s largest markets—has been slower due to complex regulatory and structural challenges. The company remains committed to completing the separation, which is also a requirement for finalizing the Mastercard investment.
This restructuring effort comes at a time when MTN Nigeria is rebounding from significant financial losses. In 2024, the company posted a record ₦400 billion net loss due to the naira devaluation and soaring operational costs.
However, the first quarter of 2025 saw a sharp recovery, with MTN Nigeria reporting a profit after tax of ₦133.7 billion. Voice and data revenues grew by 32% and 51% respectively, bolstered by new tariffs and cost-cutting measures.
Capital expenditure has also surged, with over ₦202 billion spent in Q1 alone—a 159% increase year-on-year. MTN Nigeria projects a full-year capex of ₦800 billion, while the group is set to invest $2 billion in infrastructure upgrades across sub-Saharan Africa.
As part of its ongoing localization strategy, MTN plans to reduce its stake in MTN Nigeria from 76% to 65%, divesting about 11% of its shares.
With these changes, MTN aims to strengthen operational efficiency, expand its fintech footprint, and restore investor confidence after a turbulent financial period.
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