MTN Group is set to reorganize its fintech operations in Nigeria, Ghana, and Uganda as part of a restructuring initiative that will enable Mastercard to acquire a minority share in these units.

This move comes after a 2023 agreement between MTN and Mastercard, which mandates the telecom giant to separate its rapidly expanding financial services sectors in the three countries.

The transaction, anticipated to be finalized in the first half of 2025, aligns with MTN’s broader goal of maximizing the value of its fintech ventures, which have increasingly become a significant source of revenue.

In a recent interview with Bloomberg, MTN CEO Ralph Mupita noted that the restructuring in Ghana and Uganda is progressing well, though Nigeria poses additional regulatory challenges. “Nigeria involves a bit more complexity due to several regulatory processes,” Mupita stated.

In 2023, MTN and Mastercard established a memorandum of understanding for a strategic collaboration, allowing Mastercard to take a minority stake in MTN Group Fintech. The agreement values MTN’s fintech division at approximately $5.2 billion on a cash- and debt-free basis.

“After following a tailored process to identify and possibly introduce strategic minority investors into MTN Group Fintech, we signed commercial agreements with Mastercard to bolster the growth of our fintech business’s payment and remittance services,” MTN announced. The deal is now moving toward completion, subject to standard closing conditions, including final due diligence. MTN initially indicated that definitive investment agreements would be signed shortly, facilitating Mastercard’s role as a strategic minority investor.