MTN Uganda shareholders have officially approved the structural separation of its mobile money and fintech business, MTN Mobile Money (U) Limited, also known as MTN MoMo.
The approval came during an Extraordinary General Meeting (EGM) held on July 22, 2025, where shareholders overwhelmingly voted in favour of the proposal, marking a significant step in the company’s strategic transformation and alignment with global market trends.
The structural separation is part of MTN Group’s broader Ambition 2025 strategy, which seeks to position the company as a leading provider of digital solutions across Africa.
Under the approved arrangement, MTN MoMo will be merged into a newly formed entity that will be majority-owned by MTN Group Fintech Holdings B.V., a wholly owned subsidiary of MTN Group.
The remaining shares of the new fintech company will be held in trust on behalf of MTN Uganda’s existing shareholders, ensuring they continue to benefit from the success of the mobile money business.
This restructuring is aimed at unlocking the full potential of MTN’s growing fintech portfolio by creating a more agile, focused, and scalable business unit dedicated solely to financial technology.
By structurally separating its fintech operations, MTN Uganda will be better positioned to respond to the evolving regulatory landscape and to take advantage of emerging market opportunities in the digital payments space.
The move reflects a growing trend among telecom companies globally, where operators are spinning off their mobile money units to enhance operational efficiency and attract fintech-specific investment.
MTN Uganda’s decision places it firmly in line with these global best practices, providing a pathway for long-term growth and improved governance within the fintech segment.
MTN Uganda’s Board Chairman, Charles Mbire, lauded the shareholder support and highlighted the strategic importance of the transaction.
“We are grateful to our shareholders for their confidence and backing of this strategic step. This transaction aligns with global market trends and is designed to unlock value for our shareholders while future-proofing the fintech business. The Board is confident that this decision is in the long-term interest of all stakeholders,” he said.
The company’s Chief Executive Officer, Sylvia Mulinge, echoed this sentiment, emphasizing MTN Uganda’s commitment to fostering digital and financial inclusion in the country.
“Today’s shareholder approval marks a significant milestone in our journey to accelerate financial and digital inclusion in 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,” she noted.
The newly separated fintech business will not immediately list on the Uganda Securities Exchange (USE), but this remains a medium-term objective.
During the transitional period, the trust structure will act as a holding mechanism for the portion of the fintech company not directly owned by MTN Group Fintech Holdings.
Once the regulatory approvals are secured and market conditions are deemed appropriate, the trust will be dissolved, and MTN Uganda shareholders at the time will receive direct ownership in two separately listed entities, MTN Uganda and the new fintech business.
According to company officials, this structure ensures that MTN Uganda’s institutional and retail shareholders remain integral beneficiaries of the future success of the mobile money platform.
The decision to use a trust model reflects a thoughtful approach to regulatory compliance, shareholder protection, and long-term value creation.
Mobile money has grown to become a critical component of MTN Uganda’s service portfolio and a major revenue driver.
As of 2025, MTN MoMo continues to play a vital role in financial inclusion efforts, providing millions of Ugandans with access to digital financial services ranging from person-to-person transfers to merchant payments, savings, loans, and insurance.
The structural separation is expected to create a dedicated vehicle to scale these services more efficiently while attracting strategic partnerships and investments that can further accelerate innovation.
This development also supports Uganda’s broader national agenda of digital transformation and financial inclusion.
Company officials highlight that the new structure keeps MTN Uganda’s institutional and retail shareholders as key beneficiaries of the mobile money platform’s future success.
By deepening its fintech focus, MTN Uganda is positioning itself not just as a telecom operator but as a key player in Uganda’s digital economy.
The company says it will continue working closely with regulators to secure the necessary consents and ensure a smooth transition.
As MTN Uganda advances this strategic restructuring, it remains committed to delivering value for shareholders, expanding access to financial services, and supporting the economic development of the country through inclusive digital innovation.
The outcome of the EGM represents a defining moment for the company and underscores its ambition to lead in the evolving world of mobile money and fintech in Africa.