MTN Group, Africa's largest telecommunications operator, is exploring banking licences in select markets as it pushes deeper into fintech and positions lending as its next major growth engine, CEO Ralph Mupita announced on Tuesday.
The move signals MTN's ambition to compete more directly with digital lenders like OPay and Moniepoint, which have rapidly captured Africa's booming credit and payments space.
Chasing the Next Growth Frontier
For MTN, the shift represents a strategic pivot beyond traditional telecom revenue toward "future-proof" digital services. Mupita told journalists that advanced services, including payments, e-commerce, and lending, are showing good growth. "The big growth now, which will be the growth of the future, is actually lending," he said.
Currently, MTN offers loans through partnerships with banks rather than lending directly. That could soon change. Mupita said the company is exploring banking licences in markets with large customer bases and substantial mobile wallet balances, which would allow MTN to take deposits and lend from its own balance sheet.
"It doesn't mean we won't do any partnership lending," he added, stressing that any transition would be selective and gradual given the risks involved, rather than a blanket rollout across all of MTN's African operations.
Doubling Down on Data Centres
Beyond banking, MTN is also expanding into digital infrastructure. The company plans to build AI-enabled data centres in South Africa and Nigeria through Africa Data Hub Holding, a joint venture with an undisclosed UAE-backed investor.
Mupita said MTN would hold a minority stake in the venture, while its Gulf-based partner, experienced in building data centres across the UAE and other Gulf countries, would supply the bulk of the capital and technical know-how, according to a Reuters report.
The first phase targets roughly 150 megawatts of capacity across South Africa and Nigeria, with further expansion tied to future demand.
The Bigger Picture
Together, the banking licence push and data centre investment underscore MTN's broader strategy: diversifying away from core telecom revenue and staking a claim in Africa's fast-growing digital finance and infrastructure economy — sectors increasingly seen as the continent's next major growth frontiers.
Legit.ng earlier reported that young Nigerian entrepreneurs with ideas for tackling waste and pollution have a major opportunity to turn their innovations into impact, as MTN opened applications for the 2026 Africa PachiPanda Challenge. The competition, organised by MTN in partnership with the World Wide Fund for Nature (WWF) and supported by country-level partners, is designed to identify and support young Africans developing practical solutions to environmental and sustainability challenges. In Nigeria, the challenge offers a combined ₦10 million in prize money to the top three winners, alongside mentorship, business development support and opportunities to connect with investors and industry stakeholders.
