MTN aims to obtain banking licences across Africa to expand lending services
MTN’s chief executive says the telecom group will seek banking licences on the continent, adding direct lending to its mobile-money portfolio.
Ralph Mupita, chief executive of MTN, disclosed that the company will pursue banking licences throughout Africa as part of its next growth phase. While MTN already provides voice, data and mobile-money services in more than a dozen countries, it now wants to add direct lending and the ability to accept deposits. Mupita explained that the lending operation will be financed from MTN’s own balance sheet rather than external capital.
This move follows a broader regulatory trend in Africa that is opening the banking sector to telecom and fintech firms. Nigeria, which generates the largest share of MTN’s subscribers and revenue, hosts a highly competitive environment with over 400 licensed digital money lenders. By securing banking licences, MTN hopes to capture a larger slice of the continent’s expanding financial-services market.
Why it matters
MTN’s push for banking licences could reshape Africa’s financial landscape by adding a major telecom player to the credit market.
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