MTN Group, Africa’s largest telecommunications operator, is exploring the possibility of obtaining banking licences in some of its markets as it considers using its balance sheet to expand its lending business.
Gatekeepers News reports that Ralph Mupita, MTN Group chief executive officer, disclosed this on Tuesday while speaking with journalists.
Mupita said obtaining banking licences in selected markets would enable MTN to take deposits and potentially lend directly to customers, particularly in markets where it has large customer bases and significant funds held 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,” he said.
MTN currently provides loans to customers through partnerships with banks and other financial institutions. However, Mupita said the group was considering gradually moving towards balance-sheet lending in selected markets while maintaining its existing partnerships.
He said the strategy would not be applied across all MTN markets, with the company assessing opportunities based on factors including customer numbers and the volume of mobile money deposits in each market.
According to Mupita, lending has emerged as one of the fastest-growing segments of MTN’s fintech business, alongside payments and e-commerce.
“The big growth now, which will be the growth of the future, is actually lending,” he said.
However, Mupita acknowledged that balance-sheet lending would expose the group to additional financial risks, making a gradual expansion necessary.
He said the lending strategy forms part of MTN’s broader efforts to expand its fintech operations and reduce its dependence on traditional telecommunications revenue.
MTN plans AI data centres in Nigeria, South Africa
Mupita also disclosed that MTN plans to develop artificial intelligence-enabled data centres in Nigeria and South Africa through Africa Data Hub Holding.
The venture was established with an undisclosed United Arab Emirates-backed investor to develop AI-ready data centre infrastructure across key African markets.
Mupita said MTN would hold a minority stake in the venture, while its partner, which has experience developing data centres in the UAE and other Gulf countries, would provide most of the capital and technical expertise.
The initial phase is expected to target approximately 150 megawatts of data centre capacity across Nigeria and South Africa, with further expansion to be determined by demand.
The planned facilities are expected to support the growing demand for computing infrastructure as businesses and governments across Africa increase their adoption of artificial intelligence and other data-intensive technologies.
