Uganda: MTN Uganda Shareholders Approve Fintech Split Ahead of Future Listing

24 July 2025
Daba Finance (Abidjan)

TLDR

  • MTN Uganda has received shareholder approval to structurally separate its mobile money and fintech business, MTN Mobile Money (U) Limited (MTN MoMo)
  • The transaction is a key step in MTN Uganda's long-term strategy to streamline operations and unlock value in alignment with the MTN Group's Ambition 2025 plan
  • The remaining shares of the new fintech company will be held via a trust structure, allowing existing MTN Uganda shareholders to continue benefiting from the business.

MTN Uganda has received shareholder approval to structurally separate its mobile money and fintech business, MTN Mobile Money (U) Limited (MTN MoMo), into a new majority-owned entity under MTN Group Fintech Holdings B.V. The resolution was passed during an Extraordinary General Meeting (EGM).

The transaction is a key step in MTN Uganda's long-term strategy to streamline operations and unlock value in alignment with the MTN Group's Ambition 2025 plan. The remaining shares of the new fintech company will be held via a trust structure, allowing existing MTN Uganda shareholders--both institutional and retail--to continue benefiting from the business.

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MTN Uganda Chairman Charles Mbire praised the move as value-accretive, while CEO Sylvia Mulinge said the separation would increase operational agility and enhance financial inclusion in Uganda.

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Key Takeaways

The structural separation of MTN Uganda's fintech arm reflects a wider trend among African telecoms carving out their mobile money and fintech units to unlock value, improve focus, and attract fintech-specific investors. The new structure allows MTN MoMo to operate with strategic and regulatory clarity, while shareholders retain exposure to both telecom and financial services growth. Pending approvals, the fintech company is expected to list separately after a transitional period, offering shareholders two distinct investment opportunities--MTN Uganda (telecom) and the new fintech entity. This positions MTN to better serve Uganda's digital economy and aligns with its ambition to become a leading digital platform across Africa.

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