MTN Group is considering securing banking licences in some of its African markets as the telecommunications giant seeks to expand its lending operations and deepen its presence in the financial technology sector.
The group’s Chief Executive Officer, Ralph Mupita, disclosed this on Tuesday while speaking with journalists.
Mupita said the proposed licences would potentially allow MTN to accept deposits and, eventually, provide loans directly to customers rather than relying entirely on financial institutions to fund its lending products.
He explained that the company was assessing the option in markets where it has large customer bases and substantial funds sitting 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.
MTN already provides credit facilities to customers through partnerships with banks and other financial institutions. However, the group is now considering a gradual transition to lending from its own balance sheet in carefully selected markets.
Mupita said the approach would be market-specific rather than a group-wide strategy, with MTN expected to assess the size of its customer base, mobile money deposits and overall commercial opportunity before proceeding.
He identified lending as a particularly promising area within MTN’s fintech portfolio, which also includes payments and e-commerce.
“The big growth now, which will be the growth of the future, is actually lending,” the CEO said.
However, Mupita acknowledged that taking lending onto MTN’s balance sheet would expose the group to greater financial risks. He therefore stressed the need for a gradual approach as the company develops its capabilities in the sector.
The move is part of MTN’s wider effort to diversify its business and increase the contribution of fintech services to group revenues as the traditional telecommunications market becomes increasingly mature.
MTN plans AI data centres in Nigeria
In a related development, MTN plans to invest in artificial intelligence-enabled data centre infrastructure in Nigeria and South Africa.
The project will be undertaken through Africa Data Hub Holding, a venture involving MTN and an undisclosed investor backed by interests from the United Arab Emirates.
According to Mupita, the venture is being established to develop AI-ready data centres in strategic African markets.
MTN will take a minority investment position in the business, while its UAE-backed partner is expected to provide most of the required capital and technical expertise.
The partner reportedly has experience in developing data centre infrastructure in the UAE and other Gulf markets.
The first phase of the project is expected to deliver approximately 150 megawatts of capacity across Nigeria and South Africa.
Mupita said further investments would be guided by market demand.
The proposed facilities are expected to support the growing need for computing power and data storage as artificial intelligence, cloud services and other digital technologies expand across the continent.
The initiatives underscore MTN’s broader strategy of evolving from a traditional telecommunications company into a diversified digital services group with growing interests in fintech and technology infrastructure.
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