By 
KAMPALA – In a significant move to unlock greater value from its digital financial services, MTN Uganda has announced plans to spin off its mobile money operations into a separate financial technology company, aligning with parent company MTN Group’s broader strategy to elevate fintech as a core growth driver across Africa.
The restructuring will see MTN Mobile Money Uganda (MTN MoMo) merged into a new standalone entity, to be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders of MTN Uganda.
According to the company, the proposed transaction is subject to regulatory and shareholder approvals, with an extraordinary general meeting scheduled for July 2 to facilitate the vote.
“If approved, the transaction will result in MTN MoMo ceasing to be a subsidiary of MTN Uganda,” the company noted in a public disclosure. “The mobile money and fintech operations currently run under MTN MoMo will transition to a newly constituted corporate entity following a company amalgamation.”
Separation to Support Independent Growth Trajectories
The restructuring is not expected to affect MTN Uganda’s status on the Uganda Securities Exchange, where it has remained one of the most actively traded equities since its initial public offering in 2021.
The move is part of MTN Group’s pan-African strategy to structurally separate its high-growth financial services units from its traditional telecom operations. The Johannesburg-listed telecoms giant has been aggressively expanding its fintech footprint, with mobile money services outpacing core telecom revenue in several markets, including Uganda.
While the company has not yet disclosed whether the new fintech entity will pursue external investment or strategic partnerships, the structural separation is designed to provide operational autonomy, agility, and focused growth in the East African market.
Fintech Momentum Across Africa
Mobile money continues to be a cornerstone of digital transformation in Africa, with rising smartphone adoption and a surge in cashless transactions driving fintech expansion. MTN’s decision reflects this continental trend, mirroring Airtel Africa’s announced plans to list Airtel Money in 2026 to capitalise on burgeoning demand for digital financial services.
MTN’s MoMo platform commands a significant presence across West and Central Africa, with Uganda alone accounting for 14 million active mobile money users. In Q1 2025, MTN Uganda’s mobile money revenue surged by 18.4%, reaching $70.8 million (UGX 255.6 billion), underscoring the segment’s growing economic significance.
Towards a Fintech-Focused Future
By establishing a standalone fintech company, MTN Uganda is positioning itself to capture new revenue streams and scale innovation across digital payments, credit, and other financial services. The strategic restructuring also reflects an emerging trend across African markets, where telecoms increasingly pivot toward financial inclusion and digital banking ecosystems.
As regulatory reviews and shareholder consultations progress, the planned transformation signals a new chapter for MTN Uganda’s fintech ambitions, reinforcing the group’s vision to lead Africa’s digital financial evolution.
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