MTN Group has said it is exploring banking licences to expand lending from its own balance sheet.
According to Reuters, the company aims to expand lending beyond its existing bank partnerships, with mobile money-based lending described as one of the fastest-growing segments of its financial services business.
MTN currently extends loans through partnerships with banking institutions rather than lending directly. According to CEO Ralph Mupita, the company is evaluating whether a banking licence would allow it to accept deposits in markets with large customer bases and significant float balances held in mobile wallets. Such a licence would enable MTN to lend directly from its own balance sheet in those markets, while partnership-based lending would continue elsewhere.
It was also said the approach would be selective, applied only in specific markets rather than across all of MTN's operations, and that any transition to balance-sheet lending would take place gradually given the risks involved.
The comments were made as MTN highlighted growth in what it terms 'advanced services', including payments, ecommerce, and lending, alongside its traditional telecommunications business. Mupita described lending as representing future growth for the group's advanced services segment.
Data centre investment in South Africa and Nigeria
MTN also outlined plans to develop AI-enabled data centres in South Africa and Nigeria through Africa Data Hub Holding, a joint venture with a UAE-based investor whose identity was not disclosed. Furthermore, MTN will hold a minority stake in the venture, while its partner, which has experience developing data centre infrastructure in the UAE and other Gulf countries, will provide most of the capital and technical expertise.
The initial phase of the project is expected to target around 150 megawatts of capacity across the two markets, with further expansion to depend on demand, according to Mupita.
Wider industry context
The moves reflect a broader trend among telecoms operators across Africa to diversify revenue streams through financial services, as mobile money platforms increasingly serve as gateways to lending, savings, and other banking products. For MTN, the exploration of banking licences would mark a shift from its existing bank-partnership model towards a more direct role in the region's fintech and banking sectors, subject to regulatory approval in individual markets. The data centre investment signals a parallel effort to strengthen digital infrastructure to support growing demand for AI-related computing capacity across the continent.
