Telecom
The Rise Fund to Invest $200m in Airtel Africa’s Mobile Money Business
Airtel Africa has announced the signing of an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV, a wholly owned subsidiary of Airtel Africa plc.
AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
The Transaction according to a statement from Telecom giant, values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
The Rise Fund will hold a minority stake in AMC BV upon completion of the Transaction, with Airtel Africa continuing to hold the remaining majority stake.
The Transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV.
The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.
The Group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV.
There can be no certainty that a transaction will be concluded or as to the final terms of any transactions.
The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.
Airtel Africa mobile money services Operating under the Airtel Money brand, Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa (characterised by limited access to formal financial institutions with limited banking infrastructure) and includes mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card and international money transfers.
Mobile money services, the statement said, “are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence. It is the intention that all mobile money operations will be owned and operated by AMC BV.
“In our most recent reported results for Q3, the mobile money service segment (corresponding to all the businesses that are intended to be transferred to AMC BV) delivered a strong operational performance:
- Generated revenue of $110 million ($440 million annualised), and underlying EBITDA of $54 million ($216 million annualised) at a margin of 48.7%.
- Year on year revenue growth for the quarter was 41.1% in constant currency, largely driven by 29% growth in the customer base to 21.5 million, and 9.7% ARPU growth Growth in transaction value was 53.0% to $12.8 billion ($51 billion annualised).
“Our mobile money business benefits from strong network presence with our core telecom business through the extensive distribution platform of kiosks and mini shops as well as dedicated Airtel Money branches supplementing our extensive agent network, to facilitate customers’ assured wallet and cash.
“We have a clear strategy to continue to drive sustainable long-term growth in Airtel Money with a focus on assured float availability, distribution expansion and increased usage cases for our customers.
“In this year alone we have added partnerships with Mastercard, Samsung, Asante, Standard Chartered Bank, MoneyGram, Mukuru and WorldRemit to expand both the range and depth of the Airtel Money offerings and to further drive customer growth and penetration.
“The profits before tax in the full year ending 31 March 2020 and the value of gross assets as of that date, attributable to the mobile money businesses were $143.4 million and $463.2 million, respectively.”
Key elements of the Transaction include:
- Agreement values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
- AMC BV, a wholly owned subsidiary of Airtel Africa, is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries once the inclusion of the remaining mobile money operations under AMC BV is completed.
- A newly incorporated investment vehicle of The Rise Fund will invest $200 million through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages. $150 million will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers.
- Airtel Africa aims to explore the potential listing of the mobile money business within four years. Under the terms of the Transaction, and in very limited circumstances (in the event that there is no Initial Public Offering of shares in AMC BV within four years of first close, or in the event of changes of control without TPG’s prior approval), TPG would have the option, so as to provide liquidity to them, to sell its shares in AMC BV to Airtel Africa or its affiliates at fair market value (determined by a mutually agreed merchant bank using an agreed internationally accepted valuation methodology). The option is subject to a minimum price equal to the consideration paid by The Rise Fund for its investment (less the value of all distributions and any proceeds of sale of its shares, and with no time value of money or minimum return built in) and a maximum number of shares in AMC BV such that the consideration does not exceed $400 million.
The Transaction is expected to reach first close over the next three to four months.
The Rise Fund will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.
Raghunath Mandava, CEO of Airtel Africa, commented: “In line with our vision of enhancing financial inclusion, Airtel Africa offers a unique digital mobile financial services platform under the Airtel Money brand. In most of our markets there is limited access to traditional financial institutions, and little banking infrastructure, with less than half of the population having a bank account across sub-Saharan Africa. Our markets therefore afford substantial market potential for mobile money services to meet the needs of the tens of millions of customers in Africa who have little or no access to banking and financial services, and this demand is driving growth.
“With today’s announcement we are pleased to welcome The Rise Fund as an investor in our mobile money business and as a partner to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.”
Yemi Lalude, Partner at TPG who leads Africa investing for The Rise Fund, added: “Financial inclusion is a global issue that is most acute in Africa. Through Airtel Money, Airtel Africa has built a unique platform that is closing the gap between traditional financial institutions and the millions of unbanked Africans across the 14 countries where Airtel Africa operates. We look forward to working with Airtel Africa to enhance their mobile money services, broaden its use cases, and grow into new markets. With this investment in Airtel Africa’s mobile money operations, we are excited to expand The Rise Fund’s global fintech portfolio and continue to deepen our focus on improving financial inclusion in Africa and around the world.”
Clydestone Ghana Plc has filed a writ of summons and statement of claim against MTN Ghana, MTN Group Limited and Mobile Money Fintech Limited, alleging unauthorized use of its intellectual property.
The company announced the court action at the Ghana Stock Exchange, confirming proceedings in the Commercial Division of the High Court of Ghana.
The case relates to work commissioned in 2007 that Clydestone alleges was later used without authorisation or compensation.
Clydestone said the claim involves proprietary intellectual property, confidential commercial information and operational methodology developed during the engagement. The company is seeking declarations, damages and equitable remedies.
In a statement, Clydestone said MTN Ghana engaged it in 2007 to develop a commercial and operational framework for a mobile money business.
“The work was developed and delivered by the company’s founder and Group CEO, Paul Jacquaye, and included a full mobile money ecosystem covering the commercial model, operational architecture, implementation methodology and business case.”
Clydestone said the work was commissioned on the understanding that a non-disclosure agreement and memorandum of understanding would be signed.
It alleges these agreements were not finalised despite repeated requests.
The company further alleges MTN Ghana later used its proprietary work and methodology without authorisation or compensation, including in MTN Mobile Money Ghana and other markets.
Clydestone said the alleged use has continued since the launch of MTN Mobile Money Ghana in 2009.
“The wrongful use of that work has been ongoing since 2009. What has changed is the availability of independently verifiable information that documents its scale and commercial significance,” the company said.
It cited the GSMA State of the Industry Report on Mobile Money 2026 and MTN Ghana’s 2025 annual report as evidence of the platform’s scale.
According to Clydestone, the reports show approximately 19.3 million active users and annual revenue of about GHS 6.0 billion ($516m).
The company said it reviewed its records following these publications and concluded there were sufficient grounds to initiate legal proceedings.
It added that it has received no payment or acknowledgement for the work since December 2007, and that pre-action correspondence in 2026 received no substantive response.
“The Board of Directors has unanimously authorised the commencement of these proceedings,” the company said.
Jacquaye said: “This case is about accountability for commissioned intellectual property.
“When independent publications in 2025 and 2026 revealed the scale of the mobile money business, we reviewed all documentation relating to the original engagement and concluded these proceedings were necessary.”
MTN Group Limited, named as a defendant, had not commented at the time of publication.
In a development that underscores the fragile state of Nigeria’s telecommunications grid, an incident of infrastructure vandalism in Delta State has severely disrupted network connectivity, leaving thousands of subscribers stranded.
The breach, where a robber attacked the sites, occurred at an IHS-managed telecom node in the ASB region on July 8, 2026, immediately knocking 33 base stations offline across 2G, 3G, and 4G spectrums.
The situation in the region escalated drastically by morning when a separate fibre-optic cable cut severed primary transmission lines. Because the compromised node serves as a critical fibre convergence point, the secondary fibre cut triggered a cascading failure.
This secondary disruption ballooned the number of dark sites from 33 to 103, temporarily paralysing digital communications, banking, and commerce in the affected communities.
Industry sources reveal that the financial and logistical toll of such incidents is becoming unsustainable for Mobile Network Operators (MNOs).
Currently, network providers are utilising 20 per cent more spare parts than initially budgeted for the fiscal year.
This unpredictable depletion of technical reserves has stripped operators of their supply buffers, making inventory management and financial forecasting increasingly difficult for telecom executives.
Consequently, engineering teams have been forced to cannibalise materials originally designated for network expansion and new site rollouts just to perform emergency restorations on the damaged sites.
This diversion of resources significantly delays the rollout of new infrastructure, stifling the nation’s broader broadband penetration targets and stalling anticipated revenue generation for the telecom companies.
The Nigerian Communications Commission (NCC) recently noted an average of 1,744 weekly attacks on telecom infrastructure nationwide, including over 1,100 fibre cuts.
As operators endure protracted back-and-forth negotiations with insurance firms to cover these sudden hardware losses, stakeholders are intensifying calls for the strict enforcement of the Federal Government’s recent designation of telecom assets as Critical National Information Infrastructure (CNII) to safeguard Quality of Service (QoS).
Viral rumors about a “Tesla Pi Phone” a new phone, being developed by Elon Musk, CEO and largest shareholder of Tesla and SpaceX, are entirely fake.
AI Generated Tesla Pi Phone and Elon Musk
Instead, the tech giant said on Monday it has filed an application with the US Federal Communications Commission for permission to deploy the constellation by 2028.
It said the system would provide voice, messaging, data and emergency services.
A quick fact-check revealed that Tesla Inc. has never manufactured, developed, or released a smartphone.
Videos and articles claiming a release (often priced between $150 and $800 with solar charging or satellite-only connections) rely on AI-generated concept art and recycled internet hoaxes dating back to 2021.
Musk has only mentioned a phone in hypothetical remarks, stating Tesla would build one only if major app stores completely blocked or censored essential apps like X (formerly Twitter).
On Monday however, his company said that “Amazon looks forward to delivering on the promise of D2D [direct-to-device] connectivity, including to the millions of people living, travelling and working in places beyond the reach of existing networks today,”
The filing is the first step from Amazon into satellite mobile connections, which has until now been dominated by SpaceX’s Starlink service.
Musk’s group has signed partnerships with existing operators such as T-Mobile US and the UK’s Virgin Media O2 to provide phone services for customers where their conventional networks do not reach.
Starlink operates across more than 150 countries, offering high-speed internet connections through its constellation of satellites.
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