Yes, MTN has birthed a unicorn, right inside it: “MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis.” Depending on how you look at it, MTN runs the largest fintech company in Africa, and that fintech has a valuation that is bigger than any bank in West Africa.
Good People, the biggest banks of the future will be tech companies which offer banking services, and not banks which use technology.
In his words,
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According to MTN Group President and CEO Ralph Mupita, he said the deal will be structured into two parts, including a commercial agreement on payments and remittance that uses Mastercard’s technology infrastructure to expand in Africa and the investment into a minority stake.
“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services.
“MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis. The signing of the definitive investment agreements is expected to occur in the very near term as we approach the finalization of customary due diligence. The closing of the investment will be subject to customary closing conditions.”
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