MTN Uganda Greenlights Fintech Split, Paving Way for MoMo Spin-Off and Future Listing

In a bold move that echoes global trends in the telecom-fintech convergence space, MTN Uganda has secured shareholder approval to structurally separate its mobile money and fintech business — MTN Mobile Money (U) Limited — into a standalone entity. The resolution was passed during an Extraordinary General Meeting (EGM) held on July 22, 2025, signaling a major shift in how MTN Uganda structures its core business pillars.

This separation aligns with MTN Group’s “Ambition 2025” strategy, a blueprint to transform the telco giant into a platform-based digital services leader across Africa. Under this new structure, the fintech business will be folded into a new entity majority-owned by MTN Group Fintech Holdings B.V., while existing shareholders of MTN Uganda will retain indirect ownership through a trust structure.

“We are grateful to our shareholders for their confidence and backing of this strategic step,” said Charles Mbire, Chairman of MTN Uganda. “This transaction aligns with global market trends and is designed to unlock value for our shareholders while future-proofing the fintech business.”

MoMo, Now On Its Own Path

MTN Uganda’s MoMo platform has grown beyond just mobile money — it’s now a full-blown fintech ecosystem, handling bill payments, merchant transactions, microloans, savings, and insurance. But as the sector gets more regulated and competitive, spinning it off as a separate business could give it the breathing room to scale.

“Today’s shareholder approval marks a significant milestone in our journey to accelerate financial and digital inclusion in Uganda,” said Sylvia Mulinge, CEO of MTN Uganda. “The structural separation of our fintech operations enables us to drive sharper operational focus, enhance agility, and unlock greater efficiency to deliver superior shareholder value and transform lives through digital innovation.”

In tech industry terms, this move mirrors what other digital-first giants like Safaricom in Kenya or Airtel Africa have pursued — carving out financial services to scale them with dedicated management, capital, and product pipelines. Think of it as MTN MoMo becoming the “Stripe” of Uganda, while MTN Uganda remains the infrastructure and connectivity provider.

What Happens Next?

Once regulatory approvals are in the bag, the new fintech entity will become operational. Initially, MTN Group Fintech Holdings B.V. will hold a majority stake, while the rest will be held in trust for existing MTN Uganda shareholders — both institutional and retail. The trust will act as a bridge during this medium-term transitional period, ensuring that the local shareholders don’t miss out on the upside.

The real game-changer, however, is what happens post-transition: MTN intends to list the new fintech entity, effectively allowing MTN Uganda shareholders to own shares in two separate listed companies — the core telecom operation and the fintech spin-off.

Uganda’s fintech sector is booming — from payment processors to microlending apps — but it’s still evolving in terms of regulation, trust, and scale. By structurally separating MoMo, MTN is arguably giving its fintech arm a clearer regulatory identity and a more aggressive growth mandate.

The move also sends a strong signal to investors, regulators, and fintech competitors that MTN is playing the long game in Africa’s financial transformation — with Uganda as a key launchpad.

While the vote of confidence from shareholders is clear, the road ahead will need careful navigation — especially with regulatory bodies like the Bank of Uganda and Uganda Communications Commission likely to scrutinize the structure and operational independence of the fintech entity.

If successful, MTN’s dual-entity strategy could unlock shareholder value, attract fintech-focused capital, and ultimately provide more tailored financial products to Ugandans — from the unbanked to digital-first entrepreneurs.