By Charlie Conchie
Mastercard has snapped up a minority stake in the fintech arm of South African telecommunications giant MTN in a deal that values the division at more than $5bn, the telecoms firm announced today.
MTN, Africa’s biggest mobile company which has operations across the continent, said in its half year results that the deal would be structured as a partnership on payments and remittance.
“This is a really key milestone towards driving the acceleration of our [fintech] services,” MTN chief and president Ralph Mupita said.
The size of the stake valued the unit at $5.2bn but the firm said the full size of Mastercard’s stake would not be disclosed until the deal closes.
Shares in the firm rose 5.8 per cent on the Johannesburg stock market after the announcement of the tie-up.
Mastercard has been looking to build its footprint on the continent and previously pumped $100m in the mobile money business of MTN rival Airtel Africa in 2021.
The announcement of the deal came as MTN announced its half year results, with its headline earnings per share – a profit measure – rising to 542 cents in the six months ended June 30 from 506 cents in the same period a year ago.
