MTN has completed the separation of its fintech business in Ghana, one in a line of moves the group is undertaking to create a standalone mobile payments unit.
The group has been carving out a separate fintech unit, which now operates separately with its own management, customer base and reporting structure.
MTN has long argued that the value of such assets is not truly reflected in its share price.
In January 2024, payments giant Mastercard invested R3.8bn in MTN’s fintech business as part of a plan to partner with industry experts to help grow that new revenue line. The transaction values the unit at $5.2bn (R92.5bn).
The structural separation has entailed a complex process for the group that has to be carried out in every country individually. For now, the group has received key approvals for this process in Uganda and Ghana.
On Wednesday, MTN’s third-largest operation said it completed the separation on March 31, following shareholder approval of the transaction and getting approval from regulators in the country.
“From this date, the fintech business ceased to be a subsidiary of Scancom Plc and commenced operations as a separate legal entity, Mobile Money Fintech Ltd (MMFL), in full compliance with the Payment Services and Systems Act and the Companies Act,” said MTN Ghana CEO Stephen Blewett.
The assets, liabilities and equity reserves of MTN’s MobileMoney Ltd entity have been transferred and merged into MMFL, which now houses the entire fintech business from Scancom, the group’s operating entity in Ghana.
This comes as the mobile provider reported a strong performance in the first quarter of 2026.
Service revenue increased 35.7% to 7.3-billion cedis (R10.9bn) in the quarter to end-March, with earnings before interest, tax, depreciation and amortisation (ebitda) increasing 42.9% to 4.5-billion cedis.
Profit after tax increased 46.8% to 2.5-billion cedis. A final dividend of 6 pesewas (9c) was recommended compared with 3 pesewas a year ago.
Mobile subscribers increased 9.4% to 32-million, with active data subscribers rising 16% to 20.6-million. Active Mobile Money (MoMo) users increased by 4% year on year to 18-million.
Total capital expenditure (capex) for the period stood at 300-million cedis. Excluding leases, capex amounted to 200-million cedis.
Despite geopolitical uncertainty due to conflicts such as the US-Israel-Iran war and the combat in Russia-Ukraine, MTN is positive about its prospects in the West African country.
“The global outlook for the rest of 2026 is likely to be affected by risks stemming from ongoing trade and geopolitical tensions, especially given the lack of clear timelines for resolution. Despite this backdrop, the Ghanaian economy is expected to remain broadly stable and supportive,” said Blewett.
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