MTN EYES BANKING EXPANSION, PLANS AI DATA CENTRES IN NIGERIA AND SOUTH AFRICA

MTN Group is considering obtaining banking licences in selected African markets as the telecommunications giant seeks to expand its financial technology operations and take a bigger role in lending.

The group’s Chief Executive Officer, Ralph Mupita, disclosed that the company was assessing markets where it has large customer bases and significant funds held in mobile money wallets. A banking licence could allow MTN to accept deposits and eventually provide loans directly from its own balance sheet rather than relying entirely on partnerships with banks.

Mupita said lending has emerged as one of the fastest-growing areas of MTN’s fintech business, alongside payments and e-commerce. He explained that the company sees significant long-term growth potential in lending and is therefore examining ways to strengthen its position in the sector.

However, the MTN chief executive stressed that the proposed banking strategy would be selective and would not automatically be introduced across all of the group’s markets. He also acknowledged that lending directly from the company’s balance sheet would expose MTN to additional financial and credit risks, making a gradual approach necessary.

MTN currently provides loans to customers largely through partnerships with financial institutions. The potential banking licences would give the group greater control over its lending operations in markets where the size of its customer base and mobile-money deposits make such a move commercially viable.

Beyond financial services, MTN is also expanding its ambitions in digital infrastructure, with plans to develop artificial intelligence-enabled data centres in Nigeria and South Africa.

The projects will be developed through Africa Data Hub Holding, a venture involving MTN and an undisclosed United Arab Emirates-backed investor. The partnership is expected to combine MTN’s telecommunications footprint with the investor’s capital and experience in developing data-centre infrastructure.

MTN will hold a minority stake in the venture, while its UAE-backed partner is expected to provide most of the funding and technical expertise. The first phase of the project is projected to deliver about 150 megawatts of data-centre capacity across Nigeria and South Africa.

Further expansion could follow as demand increases, particularly with the rapid growth of artificial intelligence, cloud computing and other data-intensive technologies across Africa.

The proposed investments form part of MTN’s broader strategy to diversify its business beyond traditional telecommunications services. By expanding into financial services and digital infrastructure, the company is positioning itself to benefit from Africa’s growing demand for digital connectivity, computing power and financial inclusion.

For Nigeria and South Africa, the planned AI-enabled facilities could also strengthen local data-processing capacity and support businesses that increasingly require advanced computing infrastructure.

MTN’s latest plans therefore signal a broader transformation of the company from a traditional telecommunications operator into a diversified digital services group, with fintech, artificial intelligence and data infrastructure emerging as important areas of future growth.