16 June 2025
MTN Uganda is seeking stakeholder input on a planned separation of its mobile money service, MoMo, from its main telecommunications operations. The company indicated that the proposal will be discussed at an upcoming Extraordinary General Meeting scheduled for 2 July.
If the plan is approved, the fintech division will be operated by a new company controlled by MTN Group Fintech Holdings B.V., alongside a trust established to benefit minority shareholders following a merger. This move aligns with regulatory requirements and regional strategic objectives.
MTN Uganda’s fintech arm has demonstrated strong growth, serving over 13 million customers. In the first quarter of 2025, the division reported an 18.4% increase in revenue, driven by a 19.0% rise in mobile money services, a 19.8% increase in transaction volumes, and a 31.4% jump in transaction value.
The decision to pursue structural separation is partly driven by compliance with the National Payment Systems Act of 2020, which mandates mobile money businesses to operate as standalone entities. It also aligns with the broader regional fintech strategy of the MTN Group.
Furthermore, the move supports MTN Group’s Ambition 2025 strategy, which aims to unlock value, attract new investors, and improve regulatory compliance by establishing independent fintech companies in Uganda, Ghana, and Nigeria.
MTN Uganda, under the leadership of CEO Sylvia Mulinge, emphasized that the proposed transaction will be subject to a range of conditions and regulatory approvals. This strategic restructuring aims to position MTN Uganda’s mobile money business for sustainable growth and greater operational independence, while ensuring compliance with evolving regulatory standards.
