Overview:
The planned IPO follows a trend of investment in African mobile money providers, with Mastercard acquiring a minor stake in MTN's mobile money arm two years after its $100 million investment in Airtel Money.
Airtel Africa, the parent company of Airtel Uganda, has announced plans to take its mobile money unit public in 2025, with a potential valuation surpassing $4 billion. According to CEO Olusegun Ogunsanya, the company will list next year, despite ongoing macroeconomic challenges that affected its profitability.
Airtel Money, the company’s mobile financial service, has emerged as a bright spot, with a transaction value of over $112 billion and a 38.2% increase in constant currency. The service has 38 million customers, a 20% year-on-year growth, driven by strong performance in East Africa and Francophone Africa.
The planned IPO follows a trend of investment in African mobile money providers, with Mastercard acquiring a minor stake in MTN’s mobile money arm two years after its $100 million investment in Airtel Money.
Airtel Mobile Money is strongest in six markets, including Zambia, Uganda, Tanzania, Malawi, Gabon, and DR Congo, where it has leveraged its first-mover advantages, key infrastructure, and distribution to gain a significant head start.
The company’s strategy has included deploying ATMs and establishing a network of 29,000 exclusive mobile money branches, making it a leader in the mobile financial services sector.
The listing is expected to take place in 2025, although the preferred stock exchange has not been disclosed. The move is seen as a significant step in the growth and development of Airtel Africa’s mobile money unit, which is expected to continue expanding into more African countries.