MTN MoMo Reaches 13 Million Users Despite MTN’s Worst-Ever Financial Loss

Despite South Africa’s initial hesitancy toward mobile money services, MTN MoMo (Mobile Money) has gained significant traction, reaching 13 million registered users since relaunching in 2020. This marks an impressive growth of nearly three million new users per year, highlighting the increasing demand for cashless transactions and digital financial inclusion.

MTN South Africa CEO Kagiso Mothibi emphasized the importance of MoMo in bridging the country’s digital financial divide:

“Since its relaunch in South Africa, MoMo has played a key role in promoting economic growth and reducing the digital financial divide. It provides a pathway for people who have operated on a cash basis for most of their lives to enter the formal banking system. This transition can transform lives.”

With a simple phone number, users can send and receive money, access credit, and use insurance services. Unlike traditional banking services, MoMo does not charge fees on deposits, bill payments, or transfers, making it an attractive alternative for South Africans.

MTN Group Faces Record R45 Billion Loss

While MoMo thrives in South Africa, MTN Group has announced its worst-ever financial loss due to geopolitical instability, currency devaluation, and tough market conditions outside of South Africa.

The 2024 financial year saw MTN lose:

• R11 billion due to ongoing war in Sudan.

• R34 billion from revenue losses in Nigeria, one of its biggest markets.

MTN Group CEO Ralph Mupita acknowledged the challenges:

“Despite the challenges in our macro and trading environments, we sustained the operational momentum of our business, as well as progressed several of our key strategic priorities. Our operating context was characterised by sharp devaluation of the Naira, along with elevated inflation in some markets.”

MTN’s R30 Billion Investment to Rebuild Its Network

To counteract these financial losses, MTN is planning a R30 billion investment into its networks, focusing on:

• Improving digital services to retain customers.

• Enhancing mobile money operations in high-growth regions.

• Expanding network coverage to maintain its position as Africa’s largest telecom operator, with 291 million subscribers in 2024.

The Future of Mobile Money in South Africa

Despite its financial struggles, MTN’s investment in fintech and mobile money continues to strengthen its foothold in the South African market. With an increasing demand for cashless payments, services like MoMo could reshape South Africa’s financial landscape.

MTN’s ability to scale MoMo despite its corporate losses proves that mobile money is here to stay—and could be the key to the company’s long-term recovery.

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