Strategic Shift Toward Fintech Growth
The restructuring will see MTN MoMo transferred to a new company owned jointly by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders of MTN Uganda. While the transaction still awaits regulatory and shareholder approvals, a vote is scheduled for an extraordinary general meeting on July 2, 2025.
According to a statement issued Tuesday, “the mobile money and financial technology business currently run by MTN MoMo will be operated by a new company following a company amalgamation,” meaning MTN MoMo will no longer function as a subsidiary of MTN Uganda.
No Impact on MTN Uganda’s Stock Listing
MTN Uganda assured investors that the planned corporate restructuring will not affect the company’s listing on the Uganda Securities Exchange (USE), where it has remained one of the most traded stocks since its 2021 IPO.
The separation aligns with MTN Group’s ongoing strategy to streamline operations, with a clear distinction between its core telecom services and its increasingly lucrative fintech division.
Mobile Money Driving New Revenue
The significance of the spin-off is underpinned by the strong performance of mobile money services, which have consistently outpaced traditional telecom revenues in markets like Uganda. In the first quarter of 2025, MTN Uganda’s mobile money revenue surged 18.4% year-on-year to $70.8 million (Ush 255.6 billion), buoyed by a rapidly expanding user base that has reached 14 million active subscribers.
Mobile money has become indispensable across Africa, providing essential payment services, loans, savings, and insurance to millions in regions with limited access to traditional banking.
MTN Uganda CEO Sylvia Mulinge address participants during MTN’s donation to Teens and Tots Neuro Development Centre in Kira Municipality on March 18, 2025.
Eye on Market Independence and Investment
While MTN has not yet disclosed whether the new fintech entity will seek external funding or partnerships, the structural change provides greater operational independence and potential for strategic flexibility. This could pave the way for future capital raises or partnerships similar to those seen in other African fintech ventures.
The move also follows a broader trend on the continent, with Airtel Africa recently announcing its intention to list Airtel Money by mid-2026. These initiatives signal a growing appetite among telecom operators to monetise their fintech arms amid booming demand for digital financial services.
What This Means for Uganda and Beyond
With Uganda's mobile money ecosystem growing rapidly alongside smartphone adoption, MTN’s strategic repositioning is a clear bet on the future of digital finance in East Africa. By decoupling its financial services from its telecom operations, MTN is not only preparing for the next phase of growth but also highlighting how fintech is becoming a dominant force in shaping Africa’s digital economy.