Although its core business is showing underlying resilience, its latest results – for the six months to end-June 2024 – were splashed in red ink due to the crashing naira in its key market of Nigeria and the disruptive effects of the civil war in Sudan.
“Fintech revenue increased by 27.2% year on year, in line with our medium-term guidance, with strong performances in Ghana, Uganda and Cameroon,” MTN said on Monday. The group’s fintech business is driven by the MoMo application, a competitor to rival Vodacom’s M-Pesa. MoMo active users increased by 9.1% to 66 million as of 30 June, largely driven by growth in Ghana, Uganda and Rwanda.expanded its service offering to include international remittances. At launch, payments could only be made out of South Africa to 12 African countries. MTN expanded its remittance network in April, adding 25 new wallet corridors across 10 African countries.
The group also has a bank-tech offering, which increased the amount of loans made by 73% $731.6-million. MTN attributed the “robust growth” in its partner lending products to contributions from newly established markets, which it said underpinned the performance.In all, the group’s fintech ecosystem increased transaction volumes by 18% to 9.7 billion in the period and transaction values rose by 8.5% to a staggering $146.6-billion.