Uganda: MTN Uganda to Spin Off Fintech Arm, Awaiting Regulatory and Shareholder Approvals

MTN Uganda is set to separate its fintech division from its core telecommunications business, in line with the MTN Group’s broader regional strategy across Nigeria, Ghana, and Uganda. The move, still subject to regulatory and shareholder approval, aims to establish an independent entity that can drive innovation, attract dedicated investment, and deepen market penetration in Uganda’s competitive mobile money space.

The planned spin-off is aligned with Uganda’s National Payment Systems Act (2020), which requires mobile money operators to function as standalone entities—a regulatory shift designed to strengthen oversight and transparency within the country’s rapidly evolving digital financial services sector.

Once operationally independent, MTN Uganda’s fintech business is expected to gain greater agility in capital raising, corporate governance, and strategic execution. This will not only enhance its ability to compete with rivals such as Airtel Money, but also allow it to respond more effectively to local market dynamics and regulatory expectations.

The restructuring is part of MTN Group’s long-term vision to scale its fintech portfolio across Africa. Earlier in the year, the group announced a strategic partnership with Network International to bolster payment processing infrastructure across its markets, further reinforcing its fintech credentials.

MTN’s spin-off initiative also complements its broader operational transformation, which includes pursuing network-sharing agreements to reduce infrastructure costs and expand coverage—strategies already proven effective in mature telecom markets across Europe.

For Uganda, the move comes at a pivotal moment. The country’s fintech sector has experienced rapid growth, catalysed by rising mobile phone adoption, regulatory reforms, and increasing demand for accessible financial services. With recent rollouts of regulatory sandboxes and pro-innovation frameworks, the ecosystem is ripe for the kind of expansion MTN’s fintech unit is poised to deliver.

Upon completion, the newly independent entity will rank among East Africa’s most valuable fintech platforms. Backed by global partners like Mastercard and sustained investment in technology, MTN Uganda’s fintech arm is well-positioned to expand mobile money adoption, enable broader cross-border remittance corridors, and deepen financial inclusionacross underserved populations.

However, the success of the spin-off will depend on the timely execution of regulatory approvals, smooth governance transitions, and MTN’s ability to sustain momentum through strategic partnerships and innovation.

If executed effectively, the spin-off could become a transformational milestone for Uganda’s digital finance landscape—ushering in a new era of competition, service delivery, and inclusive growth.