$100 Million venture earned by Airtel Africa Mobile Money

By Abdul Rahman Bangura–

Photo Credit: Fine Art America

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone–  On April  1st, 2021Airtel Africa published the endorsement of approval under which Mastercard – an outstanding trailblazer and international technology corporate payments industry will invest $100m in Airtel Mobile Commerce BV (“AMC BV”), a wholly-owned associate of Airtel Africa.

AMC BV is presently the brandishing firm for various of Airtel Africa’s migratory money operations and is aimed at owning and regulate the mobile money businesses across all of Airtel Africa’s fourteen operating countries. The transaction estimates Airtel Africa’s mobile money business at $2.65 billion on a cash and debt-free basis.

In this regard, Mastercard will carry a limited stake in AMC BV upon fulfillment of the Transaction, with Airtel Africa proceeding to wield the bulk interest. The Transaction is liable to customary closing conditions comprising essential regulatory filings and permissions, and the transfer of stipulated mobile money business assets and contracts into AMC BV.

Alongside the investment, the Group and Mastercard have broadened commercial pacts and approved a new commercial framework which will heighten their partnerships across various landscapes and areas entailing card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions, amongst others.

Pursuing the statement on March 18th, 2021 of $200 million enterprise in AMC BV by TPGhe Rise Fund, monetize of the Group’s telecommunication towers companies in Madagascar and Malawi on March 23rd, 2021, the Transaction is a persistence of the Group’s competition of strategic asset monetization and investment alternatives.

As recently confirmed, Airtel Africa intends for to continue to monetized its mobile money business with few enterprises up to a total of 25% of the issued stake cap monetize AMC BV, and to search the potential listing of the mobile money business within four years. The revenue from the Transaction will be utilized to lessen Group debt
and invest in network and sales infrastructure in the respective operating nations.

Raghunath Mandava, Chief Executive Officer of Airtel Africa, announced the company has welcomed Mastercard as an investor in their mobile money business.

“This is a continuation of our strategy to increase the minority shareholding in our mobile money business with the further intention to list this business within four years. We are significantly strengthening our existing strategic relationship with Mastercard to help us both realize the full potential from the substantial opportunity to improve
financial inclusion across our countries of operation. The correlation of our extensive customer base and distribution platforms and Mastercard’s products and services, innovation and know how, mean we can together accelerate demand and drive growth in financial services for the benefit of all our customers and markets,” he explained.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports,  Africa Correspondent