In a bold step to capitalise on Africa’s surging digital finance sector, MTN is spinning off its mobile money operations in Uganda into a standalone fintech company marking a strategic shift in how the telecom giant approaches its fast-growing financial services arm.
The planned restructuring will see MTN Mobile Money Uganda merged into a new entity owned by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders. The move, still subject to regulatory and shareholder approvals, is expected to be decided at an extraordinary general meeting scheduled for July 2.
If approved, the spin-off will officially end MTN MoMo’s status as a subsidiary of MTN Uganda. However, the company emphasized that the restructuring will not impact its listing on the Uganda Securities Exchange, where it remains one of the most actively traded stocks since its 2021 IPO.
“This marks a key milestone in our broader strategy to separate high-growth fintech assets from core telecom operations,” the company said in a statement.
The reorganisation allows the telecom and fintech arms to operate independently, opening the door to potential partnerships, external funding, or IPOs down the line. It mirrors a broader trend across Africa, with rival Airtel Africa also planning to list its mobile money unit by mid-2026.
Mobile money has become a vital revenue stream for telecoms in Africa, driven by growing smartphone use and the rise of digital payments. MTN’s MoMo platform has an estimated 14 million active users in Uganda alone. In the first quarter of 2025, it generated $70.8 million (Ush 255.6 billion) in revenue, up 18.4% year-on-year outpacing growth in traditional voice and data segments.
As financial inclusion deepens across the continent, MTN’s fintech ambitions are clearly gaining ground with Uganda serving as a key launchpad for what could be a continent-wide shift in how digital financial services are delivered and scaled.
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