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South Africa's MTN to sell mobile money stake to Mastercard

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South Africa's MTN has agreed to sell a minority stake in its mobile money arm to payments giant Mastercard , it said on Monday, in a bid to expand its African fintech business.

The telecoms group has since the COVID-19 crisis been trying to sharpen its focus on Africa and expand businesses such as payments, messaging, e-commerce and cloud computing to capture growth and counter Vodacom'sFor Mastercard, the deal will help deepen its presence on the continent in digital payments, which is viewed as a high margin, low capex and fast-growing business.

Shares in MTN rose by almost 10% in early trade on Monday after it announced the deal with Mastercard, which values its fintech arm at $5.2 billion, around 40% of MTN's market value. He said MTN had also signed separate commercial agreements with Mastercard to grow its payments and remittance services and for "building a broader remittance capability".

 

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