Shareholders of MTN Uganda Give Go-Ahead to the Autonomous Operations of MoMo Business Unit
MTN Uganda Announces Structural Separation of Mobile Money and Fintech Business
MTN Uganda, a leading telecommunications company, has taken a significant step towards its evolution with the proposed structural separation of its mobile money and fintech business. This decision, approved by shareholders during an Extraordinary General Meeting (EGM) held earlier today, forms part of MTN Group's Ambition 2025 strategy.
The strategic evolution includes the amalgamation of MTN MoMo into a new entity, designed to drive sharper operational focus and enhance agility. This separation will enable MTN Uganda to operate more efficiently under different regulatory and competitive dynamics, improving its ability to innovate and scale digital financial services.
The new fintech entity will be majority-owned by MTN Group Fintech Holdings B.V., with a trust holding shares for Ugandan investors. Pending regulatory approvals, the new entity will operate independently, aiming to boost financial and digital inclusion across Uganda and MTN’s other markets.
This transformational shift supports enhanced focus, regulatory compliance, investment attractiveness, and acceleration of digital financial services critical to Africa’s ongoing digital revolution and economic inclusion. With over 63 million active monthly MoMo users across MTN’s markets, the structural separation bolsters MTN’s ability to scale digital financial services continent-wide more effectively.
The move aligns with global market trends and is designed to unlock value for MTN Uganda's shareholders. Sylvia Mulinge, the Chief Executive Officer of MTN Uganda, reiterated the company's commitment to delivering digital and financial inclusion. Charles Mbire, Chairman of the Board, commended shareholders for their unwavering support.
The transaction remains subject to regulatory approvals and other customary conditions. Once completed, the new entity is expected to list separately on the Uganda Securities Exchange in 3–5 years, creating clearer investment opportunities and attracting capital specific to fintech growth.
MTN Uganda's stated goals include transforming lives through digital innovation, and this strategic step underscores the company's commitment to supporting Uganda's broader digital transformation agenda. The structural separation of MTN Uganda's fintech operations aims to deliver superior shareholder value, while contributing to Africa's progress towards digital solutions.
- The structural separation of MTN Uganda's mobile money and fintech business will enable the company to operate more efficiently within different regulatory and competitive dynamics in the finance and business industries, particularly within the fintech sector.
- MTN Group Fintech Holdings B.V. will own the majority of the new fintech entity, created from the amalgamation of MTN MoMo, with shares held in a trust for Ugandan investors.
- Once regulatory approvals are obtained and customary conditions are met, the new fintech entity is anticipated to list separately on the Uganda Securities Exchange in 3–5 years, generating clear investment opportunities and attracting capital specific to fintech growth.
