MTN Group expands fintech reach and advances IHS Towers acquisition

MTN Group is expanding its fintech operations by pursuing banking licences in selected markets to facilitate direct lending. CEO Ralph Mupita stated the company will focus on markets with large customer bases and significant wallet balances, allowing the group to hold credit risk and capture higher margins rather than just distributing loans through bank partnerships.

MTN’s fintech unit has seen significant growth, with facilitated loan values rising over 70% to approximately US$2.7bn. The company’s platforms processed roughly US$330bn in transaction value over a recent 12-month period.

In Nigeria, MTN has received conditional approval from the Federal Competition and Consumer Protection Commission (FCCPC) for its acquisition of the remaining stake in IHS Towers. To address competition concerns, the approval requires MTN to sell down up to 30% of the Nigerian component of the IHS business at market prices over time. This acquisition is expected to provide MTN with greater control over critical telecommunications infrastructure in the Nigerian market.