MTN Uganda has announced a major restructuring plan that will separate its mobile money business, MTN MoMo, from the main telecom operations. The new move is aimed at turning the fast-growing service into an independent fintech company. The company says the plan will help it meet Uganda’s new legal requirements and make the mobile money business more open and attractive to investors.
The Chief Executive Officer of MTN Uganda, Sylvia Mulinge, said this development is part of the company’s long-term strategy. She explained that the separation would make it easier for the company to grow the mobile money business, attract new partners, and allow for better transparency in its operations.
Under the new structure, MTN MoMo will no longer be a full subsidiary of MTN Uganda. Instead, it will be merged with a newly created company called MTN New FinCo. This new company will be owned mostly by MTN Group Fintech Holdings B.V., which will take 76 percent ownership. The remaining 24 percent will be held in trust for MTN Uganda’s minority shareholders.
MTN Uganda has called for an Extraordinary General Meeting (EGM) on July 2, 2025. At the meeting, shareholders will vote on whether to approve the proposal. If they agree, then Uganda’s Capital Markets Authority, the Bank of Uganda, and the Uganda Securities Exchange (USE) must also give their approvals before the deal can be completed.
This separation follows the requirements of Uganda’s National Payment Systems Act 2020, which states that mobile money providers must operate as stand-alone companies. MTN says it is not only following the law but also pushing forward with its “Ambition 2025” strategy. This strategy aims to create dedicated financial platforms that operate separately from the company’s main telecom services.
The management of MTN Uganda has promised that there will be no disruption to mobile money services. The process will be handled as a legal merger, and all services, staff, and customer support will continue as usual. Once the process is completed, minority shareholders of MTN Uganda will keep their economic benefits through a trust. Later, they will receive direct shares in MTN New FinCo when the new company is listed on the Uganda Securities Exchange, which is expected to happen within the next three to five years.
Sylvia Mulinge said this restructuring is not just about following the law. She believes that setting up an independent fintech company will make the business grow faster, open the door for more partnerships, and allow investors to have a clearer view of the company’s performance. She added that the move would also make it easier for MTN to bring in new capital and skilled professionals to grow its financial services arm.
Even though MTN MoMo will be separated, MTN Uganda will still remain listed on the Uganda Securities Exchange. Its core telecom business will also continue without changes. MTN New FinCo, the new fintech operator, will receive fresh licences and capital to run the mobile money and fintech services.
Analysts believe the move shows the maturity of Uganda’s fintech industry. They say it proves MTN is serious about growing its financial services independently from its telecom business. Many experts believe the spin-off could also attract new joint venture partners in digital payments and finance.
MTN MoMo is currently one of the most successful fintech services in Uganda. It has millions of users and handles large volumes of daily transactions. It has also contributed heavily to MTN Uganda’s overall income. By spinning it off into its own company, MTN is aligning with a trend where telecom companies around the world are separating their fintech operations to attract more growth and investment.
Minority shareholders are expected to benefit from the arrangement. A special dividend adjustment trust will ensure that they receive their fair share of dividends, even after changes in tax regulations.
The final decision now rests with shareholders at the upcoming EGM on July 2. If they give the green light, it will mark the beginning of a new chapter for MTN’s mobile money journey in Uganda. The spin-off may also serve as an example for other telecom companies in Africa that are considering separating their fintech businesses to grow faster and meet regulatory demands.
