Ralph Mupita, MTN Group CEO.

MasterCard yesterday sealed a definitive agreement with MTN, for a minority investment of up to $200 million in MTN Group Fintech, valued at $5.2 billion on a cash and debt-free basis.

The Johannesburg Stock Exchange (JSE)-listed MTN Group stated today that the deal, which is non-categorised under the JSE Listings Requirements, was originally announced on August 14, 2023, and is subject to customary closing conditions.

In a statement, MTN Group stated: “These agreements complement the larger commercial relationship between the Group and Mastercard to support the continued development and growth of technology and infrastructure to drive financial inclusion across the African continent. This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services.”

Africa's largest telecom carrier also said that, subject to market conditions, it will continue to explore opportunities for other “value enhancing partnerships and investments with strategic partners and long-term investors”.

The transaction comes as MTN Group is scaling its fintech business, as it prepares to spin off the financial services company.

MTN Group increased benefits in its overall fintech revenue in the nine months ending September 30 (third quarter), boosted by wins in Ghana, Uganda, Benin, Cameroon, and Rwanda.

The five countries are crucial fintech markets for MTN Group, which aspires to build the continent's largest and most lucrative fintech ecosystem.

During the third quarter results presentation, MTN reported that fintech revenue continued to grow and climbed by 22.1% year on year