MTN Group is considering obtaining banking licences in selected African markets as it seeks to expand its financial services business and eventually provide loans from its own balance sheet.
The telecommunications giant says lending is emerging as one of the most promising areas of growth within its fintech operations, as it looks beyond traditional telecoms revenue.
MTN Group Chief Executive Officer Ralph Mupita said the company was assessing markets where it has large customer bases and significant balances held in mobile money wallets to determine whether a banking licence would be commercially viable.
The move would potentially allow MTN to take deposits and, over time, use those funds to provide loans directly rather than relying entirely on partner banks.
“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,” Mr Mupita said.
MTN currently offers lending services largely through partnerships with banks, but the proposed model could give the company greater control over its lending operations and create an additional revenue stream.
Mr Mupita, however, stressed that the strategy would be implemented selectively and gradually, given the financial and operational risks associated with lending from the company’s own balance sheet.
He also clarified that securing banking licences would not mean an end to MTN’s partnership-based lending model, which would continue to form part of its financial services strategy.
MTN expands fintech ambitions
The potential banking push forms part of MTN’s broader strategy to accelerate growth in advanced digital services, including payments, e-commerce and financial services.
According to Mr Mupita, lending is increasingly becoming the most significant growth opportunity within the company’s fintech portfolio.
The strategy reflects MTN’s efforts to leverage its extensive mobile subscriber base and mobile money ecosystem to deepen its presence in Africa’s financial services market.
Data centres another growth frontier
Beyond financial services, MTN is also positioning itself to benefit from growing demand for digital infrastructure, particularly facilities capable of supporting artificial intelligence applications.
The group plans to develop AI-enabled data centres in South Africa and Nigeria through Africa Data Hub Holding, a venture involving an undisclosed UAE-backed investor.
The planned infrastructure is expected to provide AI-ready data centre capacity across key African markets, with the initial phase targeting approximately 150 megawatts across South Africa and Nigeria.
MTN is expected to hold a minority stake in the venture, while its UAE-backed partner will provide most of the capital and technical expertise, drawing on its experience in developing data centres in the Gulf region.
Mr Mupita said future expansion would depend largely on demand, positioning MTN to participate in the continent’s growing digital infrastructure and artificial intelligence ecosystem.
