08 September 2023
MTN Group has signed a memorandum of understanding to sell a minority stake in its financial technology activity to the American payment services giant Mastercard.
While the transaction value has not been publicised, the entire fintech branch of the group is valued at $5.2 billion.
“The signing of the definitive investment agreements should take place in the very short term, as we approach the finalization of the usual due diligence,” said MTN said in a release.
MTN managing director Ralph Mupita said that the stake to be sold to Mastercard “could subsequently increase to a maximum of 30%.”
Mastercard’s entry into MTN’s fintech arm’s round comes as mobile phones are increasingly used as a tool for financial inclusion in Africa, where nearly two-thirds of the population do not have access to mobile phones. a bank account or full access to financial services.