The strategy represents the next phase of an ongoing plan to sell assets and pay down debt so that MTN is more free to invest in expansion. The company is looking to take advantage of the millions of Africans connecting to the internet for the first time every year, many through smartphones, as well as rapid population growth in major markets such as Nigeria.
MTN’s fintech business could contribute 20 percent of group revenue in the next three to four years, compared with 8 percent currently, Mupita said. He laid out his new strategy after MTN opted not to pay a final dividend and stepped up a debt-repayment plan. Borrowings were reduced by 22 percent to ZAR 43 billion over the course of 2020 and the company plans to resume payments to investors with at least 2.60 rand a share slated for this year.
