MTN Group is exploring banking licences in some of its African markets as the telecommunications giant seeks to expand its lending business and use its balance sheet to provide loans directly to customers.
MTN Group chief executive officer, Ralph Mupita, disclosed this on Tuesday while speaking with journalists.
He said the proposed banking model would allow MTN to take deposits and eventually lend directly to customers in markets where it has large customer bases and significant funds held in mobile money wallets.
“We’re beginning to explore, where it makes sense and where there are large customer bases and significant floats in wallets, whether it may make sense to have some sort of banking licence that enables us to take deposits,” Mupita said.
Pinnacle Daily reports that MTN currently provides loans to customers through partnerships with banks and other financial institutions.
However, Mupita said the group is considering a gradual move towards balance-sheet lending in selected markets while maintaining its existing partnerships.
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He said the move would not apply to all MTN markets, as the company would assess the opportunity based on the size of its customer base and the amount of money held in its mobile money wallets in each market.
According to Mupita, lending has emerged as one of the fastest-growing areas of MTN’s fintech business, alongside payments and e-commerce.
“The big growth now, which will be the growth of the future, is actually lending,” Mupita said.
He said MTN would take a gradual approach because lending directly from its balance sheet would expose the group to additional risks.
The planned expansion into lending is part of MTN’s broader strategy to grow its fintech operations and reduce its reliance on traditional telecommunications revenue.
Plans AI Data Centres in Nigeria, SA
Mupita also disclosed that MTN plans to develop artificial intelligence-enabled data centres in Nigeria and South Africa through Africa Data Hub Holding, a venture formed with an undisclosed UAE-backed investor.
The venture will focus on developing AI-ready data centre infrastructure across key African markets.
Mupita said MTN would hold a minority stake in the venture, while its UAE-backed partner, which has experience developing data centres in the UAE and other Gulf countries, would provide most of the capital and technical expertise.
The initial phase is expected to provide about 150 megawatts of capacity across Nigeria and South Africa.
Mupita said further expansion would depend on demand.
The planned investment adds data infrastructure to MTN’s expanding fintech strategy as the group seeks to build new revenue streams beyond its core telecommunications business.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X