MTN Uganda has announced plans to spin off its mobile money business into a standalone fintech company, ending its status as a subsidiary of the telecoms group in a strategic shift aimed at unlocking more value from the fast-growing payments business.
The proposed restructuring will transfer MTN Mobile Money Uganda to a new entity owned by MTN Group Fintech Holdings B.V. and a trust acting on behalf of the minority shareholders of MTN.
MTN Uganda said the transaction is still subject to regulatory and MTN shareholders’ approvals. Shareholders are expected to vote on the transaction at an extraordinary general meeting on July 2.
“The proposed transaction will, if approved, will result in MTN MoMo ceasing to be a subsidiary of MTN,” MTN Uganda said in a notice on Tuesday. “The mobile money and financial technology business currently run by MTN MoMo will be operated by a new company following a company amalgamation.”
MTN Uganda’s restructuring will not affect its listing on the Uganda Securities Exchange, where it remains one of the bourse’s most actively traded stocks since its 2021 IPO.
The transaction is part of MTN Group’s strategy to separate its high-growth financial services business from its telecom operations. The Johannesburg-listed company is betting on fintech as a long-term growth driver, with mobile money already outpacing traditional telecoms revenues in key markets like Uganda.
While it’s unclear whether the new company would seek outside capital or partnerships, the reorganisation will allow the two businesses to pursue their growth in the East African market independently.
Mobile money services have become a critical part of the telecom business in Africa, particularly as smartphone penetration and digital payments uptake continue to grow. MTN’s move mirrors Airtel Africa’s plan to list its mobile money unit, Airtel Money, in the first half of 2026 as it seeks to capitalise on the growing demand for digital payment services across the continent.
MTN’s MoMo enjoys a larger footprint across West and Central Africa with an estimated 14 million active subscribers in Uganda. In Q1 2025, its mobile money services grew 18.4% to $70.8 million (Ush 255.6 billion).
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