MTN Group has begun to work on separating its fiber and fintech units. This movement is part of plans to unlock value and raise funds to boost its development. The operator is looking for partners and strategic investors for the two subsidiaries.
The company has 85,000 kilometers (52,817 miles) of fiber across the continent, while fintech products such as mobile payment services are growing rapidly. The strategy represents the next phase of an ongoing plan to sell assets and repay debt to allow MTN to invest in its expansion.
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The South African-based company seeks to take advantage of the millions of Africans who connect to the Internet for the first time each year. Many do this via smartphones, and there is rapid population growth in major markets on the continent such as Nigeria. MTN’s fintech business could contribute 20% of the group’s revenue over the next three to four years, up from 8% currently.
“We recognize that there is a significant demand for data in Africa that is not going to stop. Nothing prevents us from calling on other parties to help us finance the infrastructure we need. This work is already underway, ”said CEO Ralph Mupita.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
MTN fintech