MTN Group, Africa’s largest mobile operator, has signaled its intent to accelerate growth and potentially pursue an initial public offering (IPO) for its fintech unit by appointing a new board of directors, including a former CEO of the Johannesburg Stock Exchange. The move comes as the company seeks to capitalize on its expanding fintech operations and diversify its revenue streams.

Today, MTN Group announced the appointment of four non-executive directors to the boards of its MTN Group Fintech and Bayobab businesses. Among those appointed are Herman Bosman as independent chairperson of MTN Group Fintech, Nicky Newton-King and Nosipho Molope as independent non-executive directors, and Jens Schulte-Bockum as non-executive chairperson of Bayobab.

Strategic Move for Growth and IPO?

The appointments align with MTN Group’s Ambition 2025 strategy, which aims to build leading fintech and digital infrastructure platforms in Africa. By bringing in experienced industry leaders with deep knowledge of financial services, capital markets, and technology, MTN is positioning itself for significant growth and potential future IPOs.

“Building leading fintech and digital infrastructure platforms in Africa is a key part of the Ambition 2025 strategy,” said MTN Group president and CEO Ralph Mupita. “These appointments align with the focus of accelerating growth, completing the structural separations, and bringing in value-adding strategic partners into the shareholder bases of these businesses over the medium-term.”

Bosman Brings Wealth of Experience

Herman Bosman, the newly appointed independent chairperson of MTN Group Fintech, brings a wealth of experience in the financial services industry. Having previously served as the CEO of Rand Merchant Investment Holdings and RMB Holdings, he possesses a deep understanding of strategic leadership and financial acumen. His appointment is expected to provide valuable guidance to MTN’s fintech strategy and operations.

Other Notable Appointments

Nicky Newton-King, a former CEO of the Johannesburg Stock Exchange, brings extensive experience in legal, business, capital markets, banking, and regulation. Her expertise will be instrumental in navigating the complexities of the financial markets and ensuring MTN’s fintech business operates in compliance with regulatory requirements.

Nosipho Molope, with her extensive experience in MTN operations and a strong background in finance, will chair the audit and risk committee of the Group Fintech board. Her oversight will be crucial in ensuring the financial integrity and risk management of the business.

Jens Schulte-Bockum, a non-executive director of Bayobab since 2021, brings a wealth of experience in digital infrastructure businesses across Europe and Africa. His knowledge and insights will be valuable in driving the growth and development of this important subsidiary.

Fintech Pivot Paying Off

MTN Group’s pivot into fintech has been paying off. While its core business has faced challenges due to factors such as the crashing naira in Nigeria and the civil war in Sudan, its fintech revenue has continued to grow rapidly, increasing by 27.2% year on year.

The group’s fintech business is driven by the MoMo (mobile money) application, which has seen strong growth in active users and transaction volumes. MoMo offers a range of services, including remittances, point-of-sale payments, and loans, providing convenience and financial inclusion to millions of people across Africa.

IPO Speculation

While MTN Group has not explicitly announced plans for an IPO of its fintech unit, the recent board appointments and the company’s focus on accelerating growth suggest that such a move may be on the horizon. A successful IPO could provide MTN with significant capital to fuel further expansion and innovation in the fintech space.

As MTN Group continues to solidify its position as a leading fintech player in Africa, the future looks promising for both the company and its investors. The appointment of experienced directors and the strong growth of its fintech business are positive indicators of the company’s potential for continued success.