MTN Finalizing Nigeria, Uganda Fintech Spinoffs; Adds Alipay

MTN Group Ltd. is finalizing the spinoffs of its Nigerian and Ugandan financial-technology operations as part of a reorganization of its mobile-money unit. This move will allow Mastercard Inc. and other strategic buyers to acquire minority stakes in its fintech businesses. The company aims to complete these transactions by the end of the first quarter of 2024. MTN Group has also announced a strategic partnership with Alipay, the digital payment platform operated by Ant Group, to expand its fintech services across Africa. This collaboration is expected to enhance MTN's mobile money offerings by integrating Alipay's payment solutions and potentially reaching a wider customer base. The fintech spinoffs are intended to unlock value and attract external investment into these high-growth segments of MTN's operations. MTN's fintech business has seen significant growth, with over 60 million active users across 16 markets as of the third quarter of 2023. The company has been strategically divesting from non-core assets and focusing on its digital services, including fintech, to drive future growth. The partnership with Alipay is a key step in this strategy, aiming to leverage global expertise and technology to accelerate digital financial inclusion in Africa.