• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, October 21, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

African Telcos are pursuing mobile money sell-offs, why is that?

M.Cby M.C
May 17, 2021
Reading Time: 3 mins read
M.Cby M.C
in Business, Africa, Mobile, World
0
African Telcos are pursuing mobile money sell-offs

Telcos in Africa are vigorously pursuing mobile money spin-offs and sales, capitalizing on the broad range of opportunities within the financial services landscape, Fitch Solutions indicates.

These opportunities range from peaking interest rates from multi-stakeholders across the financial services ecosystem, from traditional banks looking for new routes to market.  Also, this involves small start-ups seeking to reach a large audience very quickly, and to governments looking for new ways to extract more value from services through taxes and regulation.

A number of telcos in Africa have recently engaged in mobile money spin-offs, sales and investments. MTN Rwanda, in early May 2021, announced the creation of a dedicated mobile financial services unit, Mobile Money Rwanda. With certification from the Central Bank of Rwanda, Mobile Money Rwanda is to provide the same level of customer service and safeguards as a traditional bank.

RelatedPosts

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

Ghana’s Climate Minister Issifu Appointed to CVF-V20 Board in Washington 

Another is Airtel Africa, which also announced a partnership with Mastercard to invest $100 million for a 25% stake in Airtel Mobile Commerce. The value of the deal ended up with a total of $2.5 billion as other firms joined the deal.

Furthermore, African telcos Orange and Vodacom/Safaricom have decided to pool their mobile financial operations into separate business units.

Fitch Solutions notes that the current trend provides proof for other smaller multi-country telcos such as Vodacom, Milliocom (Tigo), Etisalat/Maroc, Viettel and Africell to follow suit.

ADVERTISEMENT
Drivers for mobile money sell-offs and investments

Telcos are quickly shifting from the traditional telco model, although not entirely. Telcos are currently pursuing higher revenue growth. Albeit, Fitch Solutions indicates that telcos cannot continue controlling all parts of the service as well as infrastructure ecosystems.

“Telcos must, increasingly, choose between being either an infrastructure provider or services provider – realistically, they cannot do both effectively while governments push for tariffs to become more affordable. Yet, the cost of deploying infrastructure, maintaining that infrastructure and opening that infrastructure to third parties will only increase.”

Also, most telcos are considering giving mobile money businesses greater freedom to work with a wider range of partners and reach a bigger audience. Essentially, mobile money is only a small part of a telcos’s services portfolio. Most do not have the resources and do not have the capacity to maintain everything themselves.

“As an independent player, the mobile money business would have the freedom to work with as many players as it likes, even those that its competitors might be using. 

“This means that end-users will be able to choose from a wider selection of services and the mobile money company can work to develop more specialised applications and services, targeting niche users and possibly netting higher revenues per user/client for more attractive margins.”

More so, the switch into financial services system is to reduce telcos’ exposure to rising tax and other regulatory burdens. Mobile money services incur not only standard goods and services taxes, including transfer fees or exchange rates. Meanwhile these are both more complex and costly.

“Becoming a minority or ‘golden’ stakeholder would allow a telco to continue influencing a mobile money business after divestiture and still generate a line of income from the business that would not be as exposed – if at all – to tax and regulation.”

Again, for many telcos, mobile money is turning out to be a low-value mass-market consumer business. Thus, those that want to transform themselves into digital service providers need to be offering higher-value/higher margin advanced services, like cloud/edge computing, big data analytics, blockchain etc.

As such these advanced businesses will be more sustainable and less prone to changing consumer demands and expectations.

READ ALSO: Health risks of long working hours

Tags: Mobile MoneyTaxestelcos
Please login to join discussion
Previous Post

Stonebwoy set to celebrate first anniversary of ‘Anloga Junction’

Next Post

ASEPA requests for report on assault and abduction of two journalists

Subscription Form

Related Posts

Global Lithium Market
Extractives/Energy

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

October 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Vaultz Business

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

October 21, 2025
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability
Extractives/Energy

Ghana’s Climate Minister Issifu Appointed to CVF-V20 Board in Washington 

October 21, 2025
Energy Minister Touts Sector Strides
Extractives/Energy

Energy Minister Touts Sector Strides

October 21, 2025
Former French President Found Guilty Of Criminal Association
Europe

Sarkozy Begins Five-Year Jail Term For Criminal Conspiracy

October 21, 2025
Ghana’s Rising Food Insecurity Demands Urgent Systemic Reform
Agribusiness

Ghana’s Rising Food Insecurity Demands Urgent Systemic Reform

October 21, 2025
Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals
Banking

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

by M.COctober 21, 2025
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism
Economy

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

by M.COctober 21, 2025
Global Lithium Market
Extractives/Energy

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

by Prince AgyapongOctober 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Vaultz Business

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

by Silas Kafui AssemOctober 21, 2025
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour
General News

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

by evansjrOctober 21, 2025
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability
Extractives/Energy

Ghana’s Climate Minister Issifu Appointed to CVF-V20 Board in Washington 

by Prince AgyapongOctober 21, 2025
Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism
Global Lithium Market
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability

Recent News

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

October 21, 2025
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

October 21, 2025
Global Lithium Market

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

October 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

October 21, 2025
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

October 21, 2025
Hon. Seidu Issifu, Minister of State for Climate Change and Sustainability

Ghana’s Climate Minister Issifu Appointed to CVF-V20 Board in Washington 

October 21, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address