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    Home»Fintech»MTN bets on acquisitions to turn 300m subscribers into fintech engine
    Fintech

    MTN bets on acquisitions to turn 300m subscribers into fintech engine

    February 4, 20264 Mins Read




    MTN Group is stepping up plans to acquire fintech startups across Africa, betting that its more than 300 million mobile subscribers can be turned into a powerful engine for payments, lending and remittances as the telecom giant accelerates its shift into a broader technology platform.

    Ralph Mupita, MTN’s chief executive, said the Johannesburg-headquartered group is actively scouting for acquisition targets in fintech segments that can be plugged directly into its fast-growing financial services business.

    The strategy, he said, is focused on strengthening MTN’s platform and accelerating growth rather than pursuing short-term financial exits.

    “This is not about buying things and flipping them. It is about strengthening the platform. If an acquisition helps us grow faster, improve the customer experience or bring new capabilities into the group, that’s what we’re interested in,” Mupita told Semafor.

    MTN’s acquisition push comes at a time when Africa’s once-buoyant fintech sector is facing a prolonged funding slowdown. Tighter global financial conditions have reduced venture capital inflows, forcing startups to scale back expansion plans and leaving early-stage investors with fewer exit options. That environment has created opportunities for well-capitalised strategic buyers such as MTN.

    While Mupita declined to disclose how much MTN is prepared to spend on acquisitions, the group had more than $2 billion in cash on its balance sheet as of November last year, giving it financial firepower at a time when many fintech firms are under pressure.

    MTN’s scale remains its biggest advantage. With operations across multiple African markets and more than 300 million subscribers, the group ranks among the world’s 10 largest mobile operators. Mupita said even modest improvements in fintech adoption across that base could translate into significant growth.

    “Small improvements at our scale can be transformational,” he said.

    Read also: MTN Group shares suffer big fall as Iranian subsidiary embroiled in anti government protest

    The company’s fintech arm has become one of its fastest-growing businesses, driven by mobile money, payments and digital financial services offered under the MoMo brand in several markets.

    MTN sees acquisitions as a way to deepen these services, improve user experience and add new capabilities such as credit and cross-border transfers more quickly than building everything in-house.

    The fintech acquisition strategy also reflects MTN’s broader effort to reposition itself beyond traditional voice and data services. The group is reorganising around three core pillars: connectivity, fintech, and digital infrastructure, which includes fibre networks and data centres.

    “We are no longer just a telco. We are building platforms,” Mupita said.

    In Nigeria, that shift is already visible. MoMo Payment Service Bank (MoMo PSB), MTN Nigeria’s fintech subsidiary, this week announced a partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) aimed at expanding access to digital and financial tools for small and medium-scale businesses.

    Under the agreement, SMEs registered with SMEDAN will gain access to MoMo PSB’s digital solutions across mobile apps, USSD, point-of-sale terminals and partner portals. The tools allow businesses to accept payments through multiple channels, manage staff salaries, oversee tills and operate multiple outlets from a single platform.

    The partnership also opens participating businesses to opportunities within the broader MTN and MoMo ecosystem, alongside capacity-building support designed to improve operational efficiency and long-term sustainability.

    Usoro Usoro, executive director for strategy and innovation at MoMo PSB, said the collaboration reflects the fintech unit’s focus on reducing friction for small businesses and unlocking growth through simple, accessible digital tools.

    “This partnership with SMEDAN reflects our commitment to supporting small and medium-scale businesses with tools that help them operate more efficiently and unlock new growth opportunities,” Usoro said.

    Charles Odii, SMEDAN director-general said the initiative was designed to ensure financial support reaches small businesses in a practical and transparent way that delivers real impact.

    For MTN, such partnerships underscore how acquisitions and alliances are expected to work together as it builds a continent-wide fintech platform. By combining scale, infrastructure and targeted fintech capabilities, the group is positioning itself to consolidate its role as one of Africa’s most powerful digital players at a time when the fintech landscape is being reshaped by tighter funding and slower growth.

    Royal Ibeh

    Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.



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