MTN Uganda’s shareholders formally approved MTN Mobile Money (U) Limited’s structural separation during an Extraordinary General Meeting on Tuesday.
The proposal to split the mobile money division from its main telco business was put to a vote after weeks of investor opposition, cancelled meetings, and threats of legal action.
The plan calls for MoMo to merge into a new company called MTN New FinCo, which will be primarily owned by MTN Group Fintech Holdings and a trust that will represent minority shareholders.
This company is the largest telco on the continent in terms of subscriber numbers. Additionally, the Uganda Securities Exchange is considering listing this new company in the future.
The decision, which was approved at an Extraordinary General Meeting yesterday, is a significant step in aligning with MTN Group’s Ambition 2025 strategy, which reaffirms the telco’s long-term vision of inclusive and digitally led growth. MTN Uganda CEO Sylvia Mulinge welcomed the positive outcome.
“This milestone reinforces what we’ve always known: when we build with trust, transparency, and purpose, our journey becomes unstoppable. With full shareholder approval, we’re entering a new chapter in fintech innovation and value creation,” she said.
MTN Uganda’s significant milestone
With more than 21 million users, MTN Uganda is the biggest telecom provider in the nation and holds a sizable portion of the Ugandan mobile market.
With mobile money playing a major role in Africa’s financial revolution, MoMo has grown quickly, managing over $14 billion (UGX 55 trillion) in transactions yearly and having over 10 million active users in Uganda alone.
According to MTN Uganda chairman Charles Mbire, the strategic move paves the way for a dual listing on the Uganda Securities Exchange in the next three to five years, subject to regulatory approval.
“This transaction aligns with global market trends and is designed to unlock value while future-proofing our fintech business. The Board is confident this decision is in the best long-term interest of all stakeholders,” said Mbire.
Standard for Africa’s fintech industry
MTN’s action may set the standard for Africa’s fintech industry as a whole and indicate that telcos are starting to transform into major players in digital finance.
Uganda is quickly turning into a battlefield for next-generation financial services as rivals like Airtel are also stepping up their efforts in the mobile money space.
“Digital finance sets the pace for growth. This structural separation allows us to sharpen our operational focus, enhance agility, and transform more lives through innovative solutions,” added Mulinge.
As MTN operating companies, MTN Uganda and MTN Ghana have made significant progress in spinning off their MoMo operations as a separate entity, with plans for possible future listings.
For its MoMo operations, MTN Nigeria also has a distinct entity (MoMo PSB), albeit with a slightly different listing status.