Mobile Money Spin-Off by MTN Uganda Accelerates in Preparation for July Vote
MTN Uganda Finalizes Separation of Mobile Money Business
MTN Uganda has taken a significant step towards separating its mobile money arm, MTN Mobile Money Uganda Limited (MTN MoMo), from its core telecom business. The move, which was first announced in 2020, aims to comply with Uganda's National Payment Systems Act 2020 and meet regulatory demands across multiple markets.
The formal approval for the separation was granted at an Extraordinary General Meeting held on July 22, 2025. During the meeting, shareholders approved the merger of MTN MoMo into a newly formed independent fintech entity, majority-owned by MTN Group Fintech Holdings B.V., with remaining shares held in trust for Ugandan investors.
The separation aligns with MTN Group's broader fintech strategy and is part of its effort to unlock value in its fintech operations. The new fintech company is expected to innovate and grow independently from the telecom operations.
According to the Ugandan Payment Systems Act, a payment service provider must establish a subsidiary legal entity, and an electronic money issuer cannot use airtime as electronic money. As a result, the structural separation process is underway, with a planned Initial Public Offering (IPO) for the new fintech company expected in the medium term (3-5 years) after the approval.
The transitional period and regulatory approvals will precede the listing of the new fintech company on the Uganda Securities Exchange. The goal is to finalize the transaction by mid-2025.
In summary, the separation of MTN MoMo from MTN Uganda's core telecom business is a strategic move aimed at complying with Ugandan regulations, meeting market demands, and aligning with MTN Group's fintech strategy. The new fintech company is expected to list on the Uganda Securities Exchange in the medium term following the transitional period and regulatory approvals.
The strategic separation of MTN Mobile Money Uganda Limited (MTN MoMo) from MTN Uganda's core telecom business is part of a broader fintech strategy by MTN Group, aiming to unlock value in its fintech operations. This move also follows Uganda's National Payment Systems Act 2020, requiring a payment service provider to establish a subsidiary legal entity.
With the new fintech company expected to list on the Uganda Securities Exchange in the medium term, it is clear that technology and finance will play significant roles in its future growth and independence from the telecom operations.
