KAMPALA, Uganda – July 25, 2025 – MTN Uganda has secured near-unanimous shareholder approval to structurally separate its mobile money business, MTN Mobile Money (U) Limited (MTN MoMo), from its core telecommunications operations, marking a pivotal step in MTN Group’s Ambition 2025 strategy to lead digital solutions across Africa. The decision, passed with 99.9% support at an Extraordinary General Meeting (EGM) on July 22, 2025, will see MTN MoMo merge into a new entity, MTN New FinCo, majority-owned by MTN Group Fintech Holdings B.V., with minority shareholders retaining benefits through a trust structure. The move, pending regulatory approvals, positions MTN to enhance financial inclusion and unlock value in Uganda’s booming digital economy.The separation aligns with MTN Group’s goal of creating standalone fintech entities to drive operational efficiency, attract investment, and compete in Africa’s rapidly growing mobile money sector. MTN Uganda, the country’s largest telecom operator with over 21 million subscribers, reported an 18.4% year-on-year growth in MoMo revenue, reaching $70.8 million (UGX 255.6 billion) in Q1 2025, with 14 million active users processing over $14 billion (UGX 55 trillion) annually. The new structure will allow MTN MoMo to pursue partnerships, such as its 2023 deal with Mastercard, which introduced virtual and physical companion cards for global transactions at over 100 million acceptance points.“This approval is a milestone in our strategic evolution,” said MTN Group President and CEO Ralph Mupita, emphasizing the move’s role in delivering “accelerated scale, efficiency, and better service” to customers. Charles Mbire, Chairman of MTN Uganda, praised shareholders’ confidence, stating, “This transaction aligns with global market trends and is designed to unlock value while future-proofing the fintech business.” CEO Sylvia Mulinge added, “The separation enhances agility, drives digital inclusion, and transforms lives through innovation.”
The restructuring complies with Uganda’s National Payment Systems Act 2020, which mandates that mobile money operators function as distinct legal entities. MTN MoMo already holds an independent license from the Bank of Uganda, ensuring continuity for its 14 million users, with no disruption to existing services. The new entity, MTN New FinCo, is expected to list on the Uganda Securities Exchange within three to five years, offering shareholders dual investment opportunities in telecom and fintech.
The approval follows weeks of investor scrutiny and legal challenges, with some shareholders initially criticizing insufficient transaction details. Despite these hurdles, the EGM’s outcome reflects strong support, as noted by posts on X like @kenyanwalstreet’s, which highlighted the trust structure ensuring benefits for retail and institutional investors. @CEOEastAfrica cautioned that the process faced pushback but hailed the vote as a “pivotal moment.”
MTN Uganda’s move mirrors similar separations in Ghana, where Scancom PLC created a fintech entity in May 2025, and Nigeria, where MoMo PSB’s revenue grew 28% in 2024. These efforts align with MTN Group’s broader strategy, which served 63 million active MoMo users across 14 markets, processing $320 billion in 20 billion transactions last year. Analysts see the spin-off as a way to attract fintech-specific investors, with potential for future capital raises or an IPO, following competitors like Airtel Africa, which plans to list its mobile money unit in 2026.
Pending approvals from the Uganda Revenue Authority, Ministry of ICT, and Uganda Communications Commission, the separation could set a template for MTN’s other subsidiaries. As Uganda’s mobile money market, dominated by MTN and Airtel, continues to drive financial inclusion for 70% of adults, this move positions MTN MoMo to deepen cross-border payments and SME integration, reinforcing Uganda’s role as a fintech battleground in East Africa.
