MTN eyes fintech licences

For MTN Group, Africa's largest telecom operator, the next frontier is not just about connecting phone calls or processing payments. It's about lending money - a move that could see millions of Africans access formal credit for the first time. The company has announced plans to expand into lending across key African markets, including Nigeria, as it seeks additional fintech licences. This is a bold step, given the massive market underserved by traditional banks, and MTN's existing infrastructure could be just the ticket to making it happen.

The statistics are stark: only 4% to 5% of adults across Africa have access to formal credit. In Nigeria alone, nearly 80% of small and medium-sized enterprises (MSMEs) lack access to formal credit, while the sector faces a $236 billion funding gap. MTN's existing customer base, transaction histories, merchant networks, and mobile wallets make it an ideal candidate to bridge this gap. The company already serves more than 70 million active MoMo users, works with over 2 million merchants, and processed more than $500 billion in transaction value in 2025. By leveraging this infrastructure, MTN could become a major player in the African fintech scene.

For years, African telcos have competed with banks on payments, but MTN's latest push suggests the next battleground could be lending. This is a significant shift, as telcos have traditionally focused on providing basic services like voice and data. However, with the rise of mobile money and digital payments, telcos have begun to explore new revenue streams. By moving into lending, MTN is positioning itself to capture a larger share of the African credit market, which is expected to grow significantly in the coming years.

While MTN's ambitions are clear, the company still needs to navigate regulatory hurdles to achieve its goals. Obtaining additional fintech licences will be crucial to enabling MTN to lend directly from its own balance sheet. This will require close collaboration with regulators and a clear understanding of the regulatory requirements in each market. MTN has already helped facilitate loans through partners, with more than one million people accessing credit through its platforms every day. With the right regulatory approvals, the company could expand its lending operations to meet the demand for formal credit in Africa.

MTN's fintech ambitions are a double-edged sword. On one hand, they could bring much-needed credit to millions of Africans who currently rely on informal lenders or have no access to credit at all. On the other hand, the company's foray into lending could also lead to increased competition from established players, potentially disrupting the market and creating new challenges for MTN. As the company navigates this uncharted territory, one thing is clear: the stakes are high, and the outcome will be closely watched by investors, regulators, and the millions of Africans who stand to benefit from MTN's fintech ambitions.