MTN Group is advancing plans to separate its fintech businesses in Nigeria, Ghana, and Uganda as part of a restructuring process that will allow Mastercard to acquire a minority stake in the units.

The move follows an agreement between MTN and Mastercard in 2023, requiring the telecom giant to spin off its fast-growing financial services divisions in the three markets.

The deal, expected to be finalised in the first half of 2025, is part of MTN’s broader strategy to unlock value from its fintech operations, which have become a key revenue driver.

In an interview with Bloomberg on Monday, MTN CEO Ralph Mupita said the restructuring process in Ghana and Uganda was progressing smoothly, but Nigeria presented additional regulatory hurdles.

“Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita said.

In 2023, MTN and Mastercard formalised a memorandum of understanding outlining a strategic partnership that would see Mastercard acquire a minority stake in MTN Group Fintech. The agreement values MTN’s fintech business at approximately $5.2 billion on a cash- and debt-free basis.

“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services,” MTN said at the time.

The deal, which is now moving toward completion, is subject to customary closing conditions, including final due diligence. MTN had initially stated that the definitive investment agreements were expected to be signed in the near term, paving the way for Mastercard’s entry as a strategic minority investor.

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