MTN Group is exploring the possibility of obtaining banking licences in selected markets as it seeks to expand its lending business and strengthen its fintech operations.
The group’s Chief Executive Officer, Ralph Mupita, disclosed this on Tuesday while speaking with journalists, saying the licences could allow MTN to accept deposits and eventually lend directly to customers in markets with large subscriber bases and substantial 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,” Mupita said.
MTN currently provides credit largely through partnerships with banks and other financial institutions. However, Mupita said the group was considering gradually lending from its own balance sheet in selected markets while retaining existing partnerships.
He stressed that the proposed model would not be implemented across all of MTN’s markets, noting that decisions would be based on factors such as customer numbers and the volume of funds held within its mobile money ecosystem.
Mupita identified lending 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.
He, however, acknowledged that lending directly from MTN’s balance sheet would expose the group to additional credit and financial risks, making a cautious and phased approach necessary.
Read Also: nigerias-petrol-supply-drops-21-as-imports-rise-nmdpra
In a related development, MTN is planning to develop artificial intelligence-enabled data centres in Nigeria and South Africa as it seeks to tap into the continent’s growing demand for digital and AI infrastructure.
Mupita said the project would be undertaken through Africa Data Hub Holding, a venture established with an undisclosed United Arab Emirates-backed investor to develop AI-ready data centre infrastructure in strategic African markets.
MTN is expected to hold a minority stake in the venture, while its partner, which has experience developing data centres in the UAE and other Gulf markets, will provide most of the funding and technical expertise.
The initial phase is expected to deliver about 150 megawatts of data centre capacity across Nigeria and South Africa, with further expansion possible depending on demand.
The planned investment comes amid rising demand for data storage and processing infrastructure across Africa, driven by the rapid adoption of artificial intelligence, cloud computing and other digital technologies.
The fintech and data centre initiatives form part of MTN’s broader strategy to diversify beyond traditional telecommunications services and position the group to capture emerging opportunities in Africa’s expanding digital economy.
