Embarking on an independent Fintech project carved out from its traditional telecom business can be challenging, and overcoming this hurdle, MTN would require funding to foster growth. That is why South Africa based MTN Group Limited is looking towards a strategic partnership by offering minority interest to investors for its Fintech unit. It's important to note that Minority interest offers a significant ownership percentage of the company, but holders are not entitled to owing the company.
The MTN Group is on a quest to build an alternative source for revenue; while waiting for a mobile banking license in Nigeria with initial agreements in principle, MTN targets developing this unit, with Nigeria producing up to a third of the group's business, building a firm foundation in Nigeria's market remains crucial. Mobile money projects like MTN MoMo has created opportunities and improved the financial experience of Africans. Results of over 50 million active users, 580,000 plus merchants and over 50% transaction increase reveals just how much entering the FinTech industry can help MTN meet present demands and remain relevant in Nigeria and Africa.
As Financial Technology continues to penetrate Africa, MTN hopes to positively contribute to the evolution of mobile money usage in the continent. MTN activities will empower Nigeria and the entire African continent towards growth in its local economy and create opportunities for businesses to thrive.
Nigeria in focus:
Population: 206.1 million in 2020 as compared to 201 million in 2019
GDP: $432.3 billion compared to $448.1 billion in 2019
GDP per capita: $2,097 in 2020 compared to $2,229 in 2019