MTN Uganda has announced plans to separate its mobile money business into a standalone fintech company, marking a significant shift in strategy aimed at maximizing the potential of the rapidly expanding payment services sector.
This restructuring signals a broader intention to enhance operational focus and leverage growth opportunities within the fintech industry.
The proposed changes will transition MTN Mobile Money Uganda into a separate entity owned by MTN Group Fintech Holdings B.V. and a trust representing the interests of the minority shareholders of MTN.
The announcement, made in a statement from MTN Uganda, highlights the company’s commitment to innovating within the financial technology space amidst rising competition and growing demand for mobile payment solutions.
MTN Uganda stated that this transaction is pending regulatory approval and the green light from its shareholders. A critical evaluation of the deal will take place at an extraordinary general meeting scheduled for July 2, where shareholders will cast their votes on whether to move forward with the proposed changes.
“The proposed transaction, if approved, will result in MTN MoMo ceasing to be a subsidiary of MTN,” the company explained in a notice released this week. “The mobile money and financial technology business currently operated by MTN MoMo will function under the newly established company following an amalgamation process.”
Despite the structural changes within its mobile money division, MTN Uganda has assured stakeholders that it will not impact its position on the Uganda Securities Exchange, where it has consistently retained status as one of the most actively traded stocks since its initial public offering (IPO) in 2021.
MTN’s ongoing commitment to maintaining transparency with investors reflects its focus on sustainable growth and business accountability.
The restructuring is a part of a larger strategy by MTN Group to disentangle its high-growth financial services sector from its core telecom operations. Based in Johannesburg, the telecom giant is pivoting towards fintech as a key driver for long-term growth—a calculated move that already appears to be paying dividends as mobile money services in regions like Uganda increasingly outstrip traditional telecommunications revenue streams.
In Uganda, MTN MoMo has established itself as a leading mobile money service with an extensive user base. Official figures reveal that the platform boasts approximately 14 million active subscribers, creating a substantial footprint in the dynamic digital payment landscape.
As the mobile finance sector continues to evolve, MTN’s decision to transform MoMo into an independent entity positions it favorably to capture a larger market share and respond swiftly to the diverse needs of consumers and businesses.
While details about the potential pursuit of outside capital or partnerships by the new entity remain unspecified, industry observers anticipate that creating a standalone operation will empower MTN MoMo to pursue its growth trajectory more effectively in the East African market. This autonomy is expected to enhance the company’s agility, allowing it to innovate and adapt to consumer demands swiftly.
The mobile money segment across Africa has seen exponential growth, driven by increased smartphone adoption and a rapid shift towards digital payments. The separation of MTN’s mobile money services echoes similar initiatives across the continent as other telecom companies explore listing their financial services arms to better capitalize on this burgeoning market. For instance, Airtel Africa is making plans to list its mobile money business, Airtel Money, in the first half of 2026. Such moves highlight the industry’s recognition of mobile money’s critical role within the broader economic framework.
In the first quarter of 2025, MTN’s mobile money operations reported a significant surge, with revenues climbing 18.4% to $70.8 million (approximately Ush 255.6 billion).
This uptick reflects the growing consumer reliance on mobile payment platforms for everyday transactions, reinforcing the importance of fintech solutions in driving financial inclusion across different societal segments.
As mobile money services continue to evolve, the industry is witnessing changes that redefine user experiences and operational structures. Fintech has emerged as a critical component of this transformation, with companies like MTN Uganda taking strategic steps to secure a competitive edge.
