MTN Group finalized definitive agreements with Mastercard for a minority investment of up to $200 million in MTN Group Fintech B.V. This investment, made at a valuation of $5.2 billion on a cash and debt-free basis, marks a significant milestone in MTN’s expansion into the fintech sector.
The transaction, initially announced on August 14, 2023, is non-categorised in terms of the JSE Listings Requirements and is subject to customary closing conditions. It signifies Mastercard’s confidence in MTN’s fintech arm and its potential to drive financial inclusion across the African continent.
“These agreements complement the larger commercial relationship between the Group and Mastercard to support the continued development and growth of technology and infrastructure to drive financial inclusion across the African continent,” stated MTN Group in a press release following the signing of the agreements. The collaboration aims to enhance MTN’s fintech business, particularly its payments and remittance services, facilitating greater access to financial services for underserved populations.
MTN Group CEO commented, “This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services.” He highlighted the importance of leveraging strategic partnerships to propel MTN’s fintech ambitions forward.
The investment from Mastercard not only provides financial backing but also signifies a broader strategic partnership between the two entities. MTN expressed its commitment to exploring additional opportunities for value-enhancing partnerships and investments with strategic partners and long-term investors, subject to market conditions.
With Africa experiencing rapid digital transformation and an increasing demand for innovative financial solutions, MTN’s foray into fintech aligns with the continent’s evolving financial landscape. The investment from Mastercard is expected to fuel MTN’s efforts in driving financial inclusion and expanding its fintech offerings across Africa.
As MTN Group continues to solidify its position as a leading player in both telecommunications and fintech, the partnership with Mastercard represents a significant step towards achieving its vision of becoming a key player in Africa’s digital economy.