Mastercard has agreed to purchase a minority stake in the fintech division of MTN Group, Africa’s largest cell phone provider, which it values at $5.2 billion. The signing of the formal investment agreements will likely occur very soon as both parties near the end of the regular due diligence process; the investment will be closed subject to usual closing conditions, MTN announced in a statement on the company’s half-year financial performance posted on Monday.
According to MTN Group president and CEO Ralph Mupita, the deal will be structured as a commercial partnership on payments and remittances employing Mastercard’s technical infrastructure to develop throughout Africa and an investment in a minority share. He stated that the share size would be announced after completing the transaction, per Bloomberg.
“We delivered a resilient performance in H1 23 and made good strategic progress against a tough macro backdrop. In South Africa, we were very encouraged by the improved network availability on the back of our power-resilience investment, resulting in a stronger Q2 23 performance than Q1 23,” Mupita said in the statement. “In Nigeria, we delivered a very strong operational result, having navigated the cash shortages in Q1 23 and increased inflation. The policy changes implemented in Nigeria in Q2 ’23 have short-term negative impacts, but we see these as being very constructive for the investment climate in the medium to longer term.”
This news comes a year after MTN Group said it was searching for minority investors to invest in its African fintech subsidiary after separating it from the carrier’s main telecom business to maximize development in the thriving division. The Johannesburg-based company’s aspirations were boosted after obtaining a mobile banking license in Nigeria, its largest market, which allowed MTN to offer financial services to millions of new clients.
For the first half of this year, the transactions recorded by MTN’s mobile money business increased by 37% to $8.3 billion; over 60 million active users executed them. At the end of June 2023, the MTN Group had over 290 million subscribers.
Checkout Investor Finder by GetFundedAfrica
Investor Finder, by GetFundedAfrica, is your ultimate solution for finding investors and securing venture capital funding for your business. With Investor Finder, you can significantly increase your chances of long-term growth by expanding your investor network.
How It Works:
Investor Finder operates through three simple steps:
Sign up: Get started by signing up for a free trial. No credit card is required for the trial period.
Find Investors: Use powerful AI algorithms to discover potential investors that align with your business goals and objectives.
Manage and Engage: Once you’ve identified suitable investors, connect and interact with them directly through the platform. Manage your relationships and track your progress towards securing funding.
Pricing: Investor Finder offers a free trial with limited access to investors. For detailed pricing information and to explore the full features, please visit the GetFundedAfrica website or contact their sales team.
It’s time to accelerate your fundraising journey and propel your business forward. Sign up now for a free trial of Investor Finder. No credit card is required! Don’t wait; seize this opportunity and unlock the path to success.
Click here to get started and revolutionise your investor network: www.getfundedafrica.com/investor-finder