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MTN Explores Banking Licenses for Lending Expansion
25 Aug
Summary
- MTN Group is exploring banking licenses in select markets.
- The company aims to expand lending from its own balance sheet.
- MTN also plans AI-enabled data centers in South Africa and Nigeria.
MTN Group, Africa's largest telecoms operator, is actively exploring the acquisition of banking licenses in strategic markets. This initiative is part of a broader push to enhance its fintech services and drive growth beyond traditional telecommunications revenue. Lending has emerged as a significant growth segment within its mobile money operations.
CEO Ralph Mupita indicated that the company is assessing the feasibility of obtaining banking licenses to facilitate deposit-taking. This would enable MTN to lend funds directly from its own balance sheet over time, although partnership lending will continue. The approach will be selective, focusing on markets with substantial customer bases and wallet balances.
In parallel, MTN is investing in digital infrastructure. The company plans to develop AI-enabled data centers in South Africa and Nigeria through a new venture, Africa Data Hub Holding. MTN will be a minority investor in this venture, which aims to build AI-ready data centre infrastructure across key African markets.
