14 February 2022

Helios Investment Partners (HIP) is exploring the mobile payments segment in Africa, according to the private equity firm’s co-founder and managing partner.

In an interview with American newswire Bloomberg, Tope Lawani, said an “ongoing dialogue” is being maintained to figure out how his firm can help telecom operators leverage their mobile and digital payment platforms.

“There is a desire to carve out these businesses, and we have been in continuous dialog with such players,” Lawani said in an interview, without naming specific firms. “Companies are trying to find ways of letting these units flourish and not essentially be suffocated by the traditional parts of business.”

He added that telecom companies are currently “trying to figure out ways to let these (fintech, ed.) units thrive and not be essentially stifled by the more traditional management elements. These are strategic investment opportunities for HIP that will help further strengthen its portfolio of telecom businesses.

Helios has unveiled its interest in the fintech business of telecom operators at a time when the digital and mobile payments sector is experiencing growth in Africa, driven by the coronavirus pandemic. Prior to the arrival of Covid-19, MoMo was more concentrated in east Africa (Kenya and Tanzania) while the west and other parts of the continent favoured cash.

Airtel Africa opened its capital to Mastercard last year, while MTN Group is looking to finalize plans to spin off its mobile and financial business by the end of March.

Currently, HIP is in the process of raising $US1.25bn for future investments. In the mobile and digital payments sector in Africa, the company is aware of the development of new revenue streams such as consumer credit from which telecom operators can derive new revenues.