MTN Group, Africa’s leading telecom service provider under the leadership of Zimbabwean executive Ralph Mupita, has successfully concluded definitive agreements with global payment behemoth Mastercard. This strategic partnership entails a minority investment of up to $200 million into MoMo, the fintech arm of MTN Group.
Initially unveiled in August 2023, the deal, valued at $5.2 billion on a cash and debt-free basis, has now reached its fruition, marking a pivotal moment in the synergistic collaboration between the telecom giant and the payment industry titan. The completion of the deal is subject to customary closing conditions, emphasizing its uniqueness and significance in the market.
This investment not only showcases the enduring partnership between MTN and Mastercard but also underscores their commitment to fostering technological and infrastructural development. The primary objective is to drive financial inclusion initiatives throughout the diverse African continent, going beyond a mere financial infusion to a commitment to uplifting communities through enhanced financial services.
MTN Group thrives: Mupita’s leadership drives profits to $584 million in H1 2023
Under the leadership of Mupita, MTN Group has solidified its status as Africa’s largest telecom service provider, boasting a customer base exceeding 292 million across 19 markets.
In the first half of 2023, the group’s financial resilience became evident in its recent financial report, with profits surging from R10.4 billion ($544.6 million) to R11.16 billion ($584.4 million), and revenues escalating from R97.5 billion ($5.11 billion) to R113.2 billion ($5.93 billion).
Mastercard secures minority stake in MoMo, propelling global payment capabilities for users
Upon the finalization of the deal, Mastercard is set to secure a minority stake in MoMo, positioning itself strategically within MTN Group’s fintech landscape. This collaboration is poised to deliver comprehensive benefits, offering MoMo users global payment capabilities for international transactions.
Simultaneously, businesses operating within the MoMo ecosystem will gain the ability to digitize their payment systems, broadening their customer base and facilitating seamless transactions.
As this landmark deal paves the way for a new era in African fintech, the commercial relationship between MTN and Mastercard emerges as a linchpin, propelling MTN’s fintech business forward and setting the stage for innovative growth in payment and remittance services.