MTN Group is exploring banking licences in some of its African markets as the telecommunications giant considers using its own balance sheet to expand lending to customers.
Ralph Mupita, MTN’s group chief executive officer, disclosed the plan on Tuesday while speaking with journalists.
Mupita said the proposed banking licences could enable MTN to take deposits and eventually lend directly to customers 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.”
MTN currently provides loans through partnerships with banks and other financial institutions. However, Mupita said the company is considering a gradual move towards balance-sheet lending in selected markets while maintaining its existing partnerships.
He stressed that the strategy would not be rolled out across all MTN markets. Instead, the company would assess opportunities based on customer numbers and the volume of deposits held in mobile money wallets.
Mupita said lending has emerged as one of the fastest-growing areas 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.”
The CEO acknowledged that balance-sheet lending would expose MTN to additional financial risks, making a gradual expansion necessary.
The move forms part of MTN’s wider strategy to expand its fintech operations and reduce its reliance on traditional telecommunications revenue.
MTN plans AI-ready data centres
Mupita also disclosed plans to develop artificial intelligence-enabled data centres in South Africa and Nigeria through Africa Data Hub Holding.
The venture was established with an undisclosed UAE-backed investor to develop AI-ready data centre infrastructure across key African markets.
MTN will be a minority investor, while its partner, which has experience building data centres in the UAE and other Gulf countries, will provide most of the capital and technical expertise.
According to Mupita, the initial phase is expected to target about 150 megawatts of capacity across South Africa and Nigeria, with further expansion dependent on demand.
