Build the largest most valuable platforms - Leading digital solutions for Africa's progress - MTN Group
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Build the largest most valuable platforms
Leading digital solutions for Africa’s progress
1
Fintech and digital
services
2
MTN digital & fintech vision
The leading digital platform of Africa; unlocking economic growth through financial and digital solutions for
consumers and businesses
Meet Kafui
Kafui lives in Takoradi (Ghana). She uses MoMo to
manage her business and payments; she also sells
her products online with MoMoMarket.
She took a business loan with MoMoAdvance and
invested it in buying new products to support her community.
She used aYo to insure her inventory and reduce
her business risks.
She sends money and often shares “wisewords”
(a local ayoba content channel) to her son who is
studying in Cape Coast.
She is the leader of an ayoba group chat where
local small shop owners coordinate to buy products
in bulk at reduced prices.
She enjoys listening to one of ayoba’s church channels on
weekends and watches live Sunday functions on ayoba when
she travels to Accra for business.
3
Building on a scaled wallet platform and network
Integrated messaging, fintech, e-commerce and digital content platform
Consumers Deposit, withdraw Wallet & payment
Data scoring & analytics
Businesses
Insurtech Payment acceptance
E-commerce & loan and ecosystem payments
Payment and Subscription & Content
e-commerce distribution
API & managed services Customer engagement
Integrated Platforms and messaging
Nano loan and
insurance
API Online store front
Local P2P and management
international
remittance
Integrated ecosystem
partners Micro loans &
Banks & Insurers insurance
Digital content Money transfer operator
Agent & logistics networks Distribute content
Developers & Fintechs
Free Payment networks
messaging Content providers
4
Delivering through a BOLD strategy
Accelerate the growth in MTN territories through excellent delivery and evolve to a full OTT play
B Biggest Fintech &
Digital platform
o Operate
like an OTT
L Leverage
MTN’s core business
D Deliver
6 unicorns
in Africa and assets
Delivery
level
• Launch in key markets • Create TopCo to • Digitize distribution
expose value Wallet
• Increase in MTN base • Enable device lending
• Evolved technology Payment &
• Accelerate payment • Accelerate prepaid
• OTT operating model airtime payments E-commerce
• Compliance focus
• Acquire new talents • Airtime as a reward Banktech
• MVNO model
• Acquire non MTN • Rapid OTT adoption Insurtech
• Rapid growth through customers with free data
partnerships Remittance
ayoba
5
Securing several partnerships to ensure success
Accelerate delivery to the market and scale rapidly through our partners
InsurTech Payment & e-commerce Banktech Remittance
Partnership scope
Payment Gateway
Insurance technology Remittance licenses
technology Banking licences
licenses Remittance operation
e-commerce technology Capital
Insurance expertise Remittance technology
e-commerce expertise Risk Sharing
network Network
Merchant tool technology
6
Unique assets to leverage the opportunity
Competitive advantage due to scaled fintech platform, GSM customer base and Africa’s most valuable brand
Five MTN differentiators in the African market
AFRICA DNA EXTENSIVE BROAD SCALED PEOPLE &
& USER REACH & TRUSTED DISTRIBUTION FINTECH EXECUTIVE
KNOWLEDGE BRAND NETWORK ECOSYSTEM EXPERIENCE
Comprehensive Established agent Unique experience
Multi-channel access to Already scaled in several
understanding of user presence in key combination in key
large userbase key markets
needs in Africa markets industries
Leveraging Africa’s largest mobile network operator enabling
fintech and ayoba to have unique propositions
7
Fintech
8
Leveraging our assets, building Africa’s largest & most valuable fintech
player
Fintech The opportunity & Ambition
today market growth 2025
47 active MoMo Opportunity monthly active
100
US$25^
users in MoMo users to
16 markets
million million
750
billion Annual transaction
Market
R13.6 revenue in 2020, value US$
growth of 23.9%*.
billion Contributes 8% to MTN
opportunity billion
Group service revenue
95% ofwithpayments Fintech contribution to
20%
remain cash based
90% of economies driven
MTN service revenue
US$150
by small business
value of
transactions in
billion 2020,
up 86.6% in Q1 2021
75% ofnotMobile Money users still do
have access to loans, Nano
loans for business remain
untapped
16 567 transactions per
minute, up 46.7%
in Q1 2021 2.6% Insurance penetration in
Sub Saharan Africa
^R350 billion - key value pools
Source: Market sizing: internal desktop research, delta partners market sizing
9
On track to be the largest fintech player in Africa
Our ambition is to go beyond traditional telco-led Mobile Money play
We expect to be #1 telco-led wallet before end of 2021
2020
Overview
Number of
MAU (#m) 46 to 50m 21m 22m 47m
Number of
markets (#) 9 14 18 16
Ambition is to move beyond the traditional telco-led MoMo with the OTT super app ayoba
Payment focused Social media payments & Ecommerce and
and OTT players supervv
apps lifestyle platform
Source: Competitor benchmark: desktop research and MTN internal
10Unpacking MTN fintech markets
MTN has scaled user and transaction penetration, secured licences and deployed local operation
Region Country Population Active MTN MTN Tnx Fintech licence
#m wallet #m value / GDP status
South Africa 59 0.3 0% Bank led
Southern
Zambia 18 3.6 20% Telco led
Western Africa
eSwatini 1 0.5 16% Telco led
36% 3% 0.4% Nigeria 200 5.0 0% Super Agents
Eastern
Ghana 30 10.5 120% Telco led
1% Cote d'Ivoire 27 5.0 23% Telco led
Central 29% Western
2% Africa Guinea C. + B. 15 1.3 10% Telco led
1%
25%
Benin 13 2.8 64% Telco led
3%
Financial
Liberia 5 0.7 38% Telco led
service
account %^^ Central Cameroon 26 4.0 25% Telco led^
Southern
Africa Congo 5 1.7 5% Telco led^
Credit card 16%
penetration %^^ Uganda 44 8.4 40% Telco led
60%
Eastern Sudan 42 0.0 0% Telco led
25%
Insurance Africa South Sudan 11 - 0% Telco led
penetration %^^
Rwanda 13 3.5 67% Telco led
^In application
^^ Data.worldbank.or, internal MTN desktop research, DELTA partners
11Blueprint to reach 100m active wallets by 2025 | Opportunity US$4.3bn
wallet
Continue penetration within existing MTN base | Access to non-MTN subscribers in existing markets | New markets
MoMo Monthly Active Users
Strategy overview and focus
(MAU)
120 000 000 120 000 000
>100 million • Move penetration from 40% → 70%
100 000 000
94 337 918 100 000 000 within MTN GSM base
84 185 119
77 435 013 • Win in Nigeria with the right approach
on PSB set up; and
80 000 000 80 000 000
58 766 001 deploy full MoMo product offering
60 000 000 60 000 000
and ecosystem
47 million
40 000 000 40 000 000
• Grow and expand in new markets
• Advance service growth by enabling
recurring usages
20 000 000 20 000 000
- -
• Open MoMo to non MTN users with
2020 2021 2022 2023 2024 2025
MoMoApp and ayoba
Nigeria SA WECA SEA MENA Total
12Well-positioned to seize payment & e-Commerce | Opportunity US$8.6bn
Largest and growing, merchant base | At-scale mobile wallet platform | Strong brand Payment
In 2 years we have > 500k Based on established
merchants using MoMoPay to operations, licence holdings
accept payments, ambition to and mature relationships with
reach 3 million in 2025 regulators in 16 countries
Through the wallet, MTN Large distribution network of
offers a unique payment stores and agents, leveraged
process with escrow as well to enable e-Commerce
as lending logistics
Highly recognised & trusted brand Scaled mobile wallet provides a
(#1 in Africa), builds trust in captive consumer base for
payments offering for merchants merchants to leverage
and consumers
13Prioritising BankTech value propositions | Opportunity US$7.8bn
lending
Combining data wealth and scaled mobile wallet, we currently facilitate US$100m worth of loans per month
MoMo Consumers MTN Consumers MoMo Merchants MoMo Agents
MoMo-Advance Airtime-Advance Merchant-Advance Agent-Advance
(live in Uganda) (planned Q1 2022) (planned Q3 2021) (Nigeria loading Q2 2021)
Lending product embedded in the Lending product for MTN Product leveraging merchant Loan on MoMo float availability
MoMo user journey consumers depleting airtime MoMo payment history and during peak time & in remote area
merchant business turnover data
Targeting P2P, bill payment, and Replacing existing partners and Improving MoMo customer
merchant payment use cases saving estimated US$200m p.a experience
Live with own-solution in one market and through partnerships across five markets
Aim to be live across all our markets by 2023
14Gaining momentum on InsurTech venture “aYo” opportunity US$1.8bn
Ambition to become Africa’s #1 micro/mass insurance provider InsurTech
2021 development & strategy 2025 InsurTech ambitions
Current aYo overview
• 11.3m insurance policies sold since
inception (6.7m active)
33m
• 3 markets live | Micro hospital & Life Active customers
Insurance
• To add 2 markets in 2021, including
Nigeria
Strategy US$ 455m
• Expand in more countries Revenues
• Continue leveraging core MTN and
fintech platforms
• Onboard Sanlam as a strategic
partner to accelerate InsurTech Full portfolio
Micro, life, retirement,
We are onboarding Africa’s largest insurance company (Sanlam)
as a strategic partner to accelerate InsurTech expansion and growth
saving, general
15Leveraging our wallet, receiving over US$1bn p.a | Opportunity US$0.5bn
Targeting a 4x increase in our remittance volumes by 2025 Remittance
Regional and inbound remittance potential Our strategy
Where we are today
UE Continue to grow ecosystem
• Opened >30 regional corridors
US$25bn ME&A partners and regional corridor
US enabling customers to send/receive
US$11bn
U$18bn
funds to/from courtiers in SSA through standards tech and
commercial
• >50 partners including world remit,
Western Union, money gram sending
traffic Launch inbound remittance in
Regional Nigeria contributing to 40% of
US$14bn • Receive >US$1 billion international
remittance p.a. total inbound remittance to SSA
• Send >US$100 million p.a
• Launched our own remittance App Drive aggressive pricing on
Remittance potential “Homeland” in UK Homeland and launch in Europe &
• Remittance to SSA growing US
>10% p.a. and currently
estimated at US$55 billion p.a.
Use Airtime and Data as well as
• Within Africa formal remittance synergies with the core telco to
estimated at US$14 billion p.a
drive volumes
and growing with regional
economic integration
16Structural separation of fintech business to deliver ambitions & reveal
value
Rationale
Local Opco set up
• Local Opco licences
• Enabling operating model • Companies set up
• People and process separation
• Attract strategic partners • Customer ownership
• Accounting separation
• Comply with local regulations
• Reveal value TopCo set up
• TopCo company set up
• Technology separation
Q1 • Central operation and service set up
• People and process set up
Ongoing assessment of key considerations 2022
• Engagement with potential Fintech consolidation
strategic partners • Transfer of ownership
• Accounting consolidation
• Countries specific most efficient
consolidation path
Transaction
• Strategic partnership
• Investment
17Our 2025 Ambitions
100 million >20%
active MoMo users contribution to MTN Group service revenue
Leverage 1st Wallet unicorn to unlock
+ 4 new unicorns
(Payment, Insurtech, Banktech, Remittance)
Grow and expand beyond MTN customers and markets
18Digital & ayoba
19ayoba is our platform to harness Africa’s unique digital ecosystem &
context
Triple play of free messaging, content distribution service and e-Commerce powered by an open platform
Free messaging suite
Supported by free data, a full messaging service including groups,
media sharing, voice notes, SMS continuity, VoIP and video calling
Open
Content and channel services platform
Opening of
Global & local content distribution & Go To Market leveraging
platform to 3rd
The African Digital global brand & local presence
party services
economy catalyst delivered via
channels,
BOTs and app
Social-Commerce in app
Integrate fintech as a financial service & payment method
to enable
ayoba to be a digital market place
20We aim to reach 19m MAUs by 2021 and 100m by 2025
Our plan is to leverage MTN existing base to scale up quickly and then grow as OTT player in new markets
Jun
2020 2021 2023 2025
2019
100m
App of 41m
the Year
Monthly Launched
in 20
active countries 19m OTT play in
users big African
markets
5,5m Leverage MTN
2,2m data & Fintech
435k
Messaging Gaming MoMo Micro apps Premium content E-commerce
Product
expansion Channels Free data Music Voice & Video App in App OTT play
21The ayoba platform aims to harness growth in the African digital economy
ayoba The opportunity & Ambition
today market growth 2025
Opportunity
5.3 million
ayoba users
in 20 markets US$8.5^
Grow active monthly
ayoba users to 100
million
billion GMV
20 Markets
Market growth
Capture >10% of the
GMV of the digital
economy to reach
US$1 billion
475m Mobile data connections by 2025
5 In-app services
71% Smartphone penetration by
2025 vs 45% today
3.9% GDP of the digital economy
today
^R118bn – key value pools
Sources: GSMA, Statista, Delta Partners analysis
22The digital economy opportunity in SSA
Enablers for a digital economy in Africa are aligned to enable a strong acceleration in the next 4 years
Acceleration of Acceleration of Build up of Large potential of Digitalisation of Success in digital
mobile data smartphone digital economy digital services services & in Africa requires
penetration penetration value chains by 2025 e-Commerce localisation
Mobile data 45% of mobile Digital economy is Digital content Content not bound to Big digital players
connections in SSA to connections are only 3,9% of the GDP distribution shows a traditional channels, address big markets
grow 3 fold by 2025 to smartphone users R118bn market size with mobile & PC first
reach 475m for MTN on the main capturing 85% of
verticals video consumption in Localisation is still
Driven by network Expected to grow Nigeria. required to succeed
expansion & data cost to 71% by 2025 driven on the continent
reduction by decline in device E-commerce growing
prices very fast
Significant potential for a Super-App to capture the African digital opportunity
Network & distribution assets enable a unique opportunity to become Africa’s Digital Giant
Sources: GSMA, Omdia, TeleGeography, Delta Partners analysis
23Capturing a large share of the GMV^ of the Digital Economy
Main verticals covered by the app have a total market potential of R118 billion
Digital services revenue evolution within the MTN footprint
(Rb)
Music
E-Commerce
Gaming and e-Sports
118
6
US$8.5bn
Video
^^Total market size in MTN footprint,
13
excl. fintech, Delivery, 2025
E-Health
17
E-Learning
26
>10%,
48
2
4 27
8
8
13 29 R10-15bn
12 % GMV, Absolute value GMV captured in
ayoba, excl. fintech, Delivery, 2025
2020 2025
Aim to capture >10% of the GMV of the digital sector in our footprint to
reach R10-15bn GMV (~US$1bn) by 2025
^ Gross merchandise value
Sources: GSMA, Statista, Delta Partners analysis 4
24Development phase of ayoba is organized around 3 stages
Completing stage 1 this year and stage 2 by 2023
ENRICHED COMMUNICATION
(CONTENT, BUSINESS)
FREE DATA ALL
NETWORKS
OTHER
E-WALLETS
INSTANT
MESSAGING MVNO
TELECOM
FREE DATA OFFERING
OTT
MTN FINANCIAL
MOMO SERVICES
MARKET
ACCOUNT PLACE
FREE
CONTENT
25Our 2025 Ambitions
Capture
100 million >10% to reach
US$1 billion
active ayoba users
GMV of digital sector
Enablers for a digital economy in Africa are aligning for a
strong acceleration in the next 4 years
ayoba will capture this growth by
leveraging telco & fintech platforms
26Take-aways
27Key risks/limitations mitigated through deliberate interventions
We have a clear plan to mitigate those risks, with the main actions well advanced
• Structural separation of fintech business
Appropriate operating model to support ambition • New operating model implemented together
with Topco Investment in technology, people &
strategic partnerships
EXECUTION
• RAPID execution of 6 unicorns with integrated
platform
• Strategic investment and partnership to support
Disruptions to current commercial model
rapid growth
• Free Data & SMS continuity as differentiator
COMPETITION
PSB licence in Nigeria • Engagement with regulators and partners
REGULATION
28Fintech & ayoba
Our vision is supported by 2 platforms
Africa’s Africa’s
Super platform Super App
Fintech
Wallet Instant Messaging
Payment & E-commerce Multimedia content
BankTech Lifestyle applications
InsurTech Digital services
Remittance Social commerce
The combination of ayoba and Fintech platforms is a unique asset to harness Africa’s digital economy
29DigiFin revenue ambition
Ambition is to grow and diversify revenue to contribute at least 20% of Group revenue over the medium term
DigiFin revenue composition • 100 million ayoba MAU
120%
• Platform to distribute digital content and
Wallet Payment and E-commerce BankTech InsurTech ayoba & digital service
• ~60 million policies
• Successful execution of product roll out
100%
19% • geographic expansion with new strategic
partner
80%
1%
• US$4 billion annual remittance volume
26% • Continues volume growth through partners
60%
6%
40%
• US$4 billion loans per month
• Successful execution of Banktech roadmap
47%
• 3 million active merchant
20%
• Successful implementation of product
0%
roadmap
2020 2025 • 100 million active wallet
• Continue leveraging MTN and succeed
9% of MTN Service revenue >20% of MTN Service revenue in Nigeria
revenue
Investment in technology and skills to support execution
Strategic partnership to enable RAPID scale for each vertical with tailored operating model
EBITDA^ margin ~30% and capex intensityMTN DigiFin leadership
a global team, passionate about Africa and committed to unlock the full potential of the Digital economy
Chris from
Kampala to
Monrovia
Aminata
Komba Alain from from
from Cameroon Conakry
Zambia
Usoro
from
Nigeria
Serigne from Sam
Dakar to from Andrew & Andrew
Joburg Eswatin Cedric from
Eli from CPT &
i Abidjan to Joburg
from
Joburg
Ghana
Phrase from
Lynda from
Kampala to
Cote
Joburg
D’Ivoire
Chantal
Elsa from from
Roma to Rwanda
Lagos Etienne from Tiemoko from
Paris to Abidjan Mali
31Key take-aways
Ambition 2025 DigiFin summary
$
Africa’s digital economy We are building Africa’s We are delivering Our proven InStartUp
opportunity is untapped; Super Platform and 6 Unicorns; we are done model gives us agility
it is happening NOW! Super App with one! and RAPID scale
475m 100m US$750bn+ Q1 2022
smartphones MAUs transactions full set up of
Fintech TopCo
revenue opportunity
US$35bn 30% 3m >20%
merchants of MTN service
of GDP moved revenue by 2025
32You can also read
