MTN Group, Africa’s largest telecommunications provider, is in the final stages of separating its Nigerian and Ugandan financial technology units. The move clears the path for Mastercard Inc. and other strategic investors to buy minority stakes in the mobile money businesses.

Chief Executive Officer Ralph Mupita said the corporate reorganizations are complex because the company wants to ensure it retains full value during the transition. Speaking at a capital markets event, Mupita said MTN is willing to sell up to a 30 percent stake in its fintech business and is not bound by initial public offering deadlines.

To expand the unit, MTN signed a partnership with Ant International to upgrade its mobile money ecosystem. The updated platform will launch in Nigeria next quarter, bringing new merchant features and fraud-prevention tools. The partnership aims to build more stable digital infrastructure across its largest regions.

MTN targets Nigeria lending expansion

The Johannesburg-based company is separating these units to fulfill a 2023 agreement with Mastercard. Telecom carriers across Africa are expanding into financial services to serve a young population that relies on mobile devices for banking. MTN Fintech Chief Executive Officer Serigne Dioum said the division generated R28.8 billion ($1.74 billion) last year.

The fintech unit processed about $500 billion in transactions across 14 markets last year, according to Dioum. MTN now plans to secure additional regulatory licenses in specific countries. These permits will allow the carrier to offer direct loans to customers and lend money against its own balance sheet.

In Nigeria, MTN previously faced regulatory limits on international money transfers and lending. This allowed newer competitors like OPay and PalmPay to capture market share. Dioum said the business potential in Nigeria remains vast, and MTN is working to upgrade its license while preparing to launch its Alipay platform.

Building Africa’s alternative credit market

MTN plans to offer a wider choice of credit options to tap into Africa’s underserved banking market. Access to commercial bank loans remains low across the continent despite rising consumer demand. A report by the National Credit Guarantee Company showed that 80 percent of small Nigerian businesses lack access to formal credit lines.

Research firm Stears estimates the funding shortage for these businesses stands at $236 billion. The credit push comes as financial services become one of MTN’s fastest-growing revenue streams. In 2025, the fintech business brought in about $2.8 billion in revenue and handled over 23 billion individual transactions.

The company now has over 70 million active MoMo users and 2 million merchants on its network. It also supports 1.4 million agents across Africa. For MTN, issuing loans represents its next major source of growth, building on credit options it offers through bank partnerships.