Mastercard has acquired a minority investment in South African company MTN, which is valued at $5.2 billion. The investment details were undisclosed, but the definitive investment agreements are expected to be signed soon after customary due diligence.
This investment by Mastercard follows their $100 million investment in Airtel Africa earlier this year. Mastercard and Airtel have also recently launched a remittance transfer service for their 100 million users.
MTN Group Fintech has been actively seeking strategic minority investors, and this collaboration with Mastercard builds upon their previous commercial agreements. Mastercard’s support has greatly contributed to the success of MTN’s payment and remittance services.
In the first half of 2023, MTN reported a 37% increase in transaction volume, amounting to R8.3 billion. The company’s balance sheet remains strong, comfortably meeting loan covenant limits, as they continue with their expansion plans.
MTN has also made progress in exiting the Afghan market. Due to the country’s economic collapse, MTN will no longer facilitate remittances and has sold their division to Investcom AF, a Lebanese holding company, and the SBP Group, a Myanmar company.
Despite challenging operating conditions across their 19 markets, MTN Group delivered resilient results and advanced their fintech business with the support of Mastercard.