In a move to solidify its position in the rapidly evolving digital landscape, MTN Group, the telecommunications giant, has announced plans to invest approximately $1.8 billion in enhancing its data and fintech services across the African continent this year.

This significant investment comes on the heels of a remarkable growth trajectory for the company’s fintech business, which saw its active user base swell to an impressive 72.5 million by the end of 2023. Furthermore, the volume of fintech transactions soared by approximately a third, reaching an astronomical 17.6 billion, while the value of transactions across the fintech platform surged to a staggering $272 billion.

According to MTN Group’s President and CEO, Ralph Mupita, the driving force behind this growth has been the company’s advanced services in payments, bank tech, and remittance solutions. However, acknowledging the challenging macro-economic conditions in some of its operating environments, particularly the forex volatility in Nigeria, Mupita emphasized the company’s commitment to navigating these challenges.

“We are anticipating that the macro conditions in our trading environment will persist in 2024, with naira volatility and elevated inflation the key challenges we will need to navigate,” Mupita stated. “MTN plans to invest R35-39 billion in 2024 to position the company to capture the structural demand for data and fintech services across Africa.”

Mupita further highlighted the company’s recent partnership with Mastercard Inc., which values MTN’s fintech business at an impressive $5.2 billion. This strategic alliance is expected to position the fintech business for accelerated growth, with commercial launches of card issuance, acceptance, and remittances planned across the company’s footprint.

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The high demand for data services has also been a driving force behind MTN Group’s investment strategy. The company recorded a 9% increase in active data subscribers, reaching an impressive 150 million – half of its total subscriber base. Additionally, the Group’s active Mobile Money (MoMo) users grew by 5% to 72.5 million, reflecting a strategic shift in focus towards wallet customers in Nigeria and base clean-ups in Côte d’Ivoire and South Africa.

As of December 2023, MTN Group’s total subscribers across its markets reached an impressive 295 million, solidifying its position as a leading player in the telecommunications industry on the African continent.