MTN Uganda has received overwhelming shareholder approval to hive off its mobile money unit, MTN MoMo (U) Limited, from its core telecom business, and list it separately on the country’s stock exchange.
Voting on the proposal to separate the mobile money unit from its core telco business, followed weeks of investor pushback, postponed meetings, and legal threats.
The plan, according to the continent’s largest telco by subscriber numbers, is for MoMo to merge into a new entity called MTN New FinCo, which will be majority-owned by MTN Group Fintech Holdings and a trust representing minority shareholders. This new entity is also eyeing a future listing on the Uganda Securities Exchange.
Welcoming the positive outcome, MTN Uganda CEO Sylvia Mulinge described the decision, passed at an Extraordinary General Meeting yesterday, as a pivotal step in aligning with MTN Group’s Ambition 2025 strategy that reaffirms the telco’s long-term vision of digital-led and inclusive growth.
“This milestone reinforces what we’ve always known: when we build with trust, transparency, and purpose, our journey becomes unstoppable. With full shareholder approval, we’re entering a new chapter in fintech innovation and value creation,” she said.
MTN Uganda, the country’s largest telecom operator, currently boasts over 21 million subscribers, representing a significant share of Uganda’s mobile market. With mobile money being a key component of Africa’s financial revolution, MoMo has rapidly expanded, handling over $14 billion(UGX 55 trillion) in transactions annually and reaching over 10 million active users in Uganda alone.
Charles Mbire, chairman of MTN Uganda, believes the strategic move sets the stage for a dual listing on the Uganda Securities Exchange within the next three to five years, pending regulatory clearance.
“This transaction aligns with global market trends and is designed to unlock value while future-proofing our fintech business. The Board is confident this decision is in the best long-term interest of all stakeholders,” said Mbire.
MTN’s move could be a pacesetter for Africa’s broader fintech ecosystem, signalling a shift to telcos evolving into digital finance powerhouses. With competitors like Airtel also doubling down on mobile money, Uganda is fast becoming a battleground for next-gen financial services.
“Digital finance sets the pace for growth. This structural separation allows us to sharpen our operational focus, enhance agility, and transform more lives through innovative solutions,” added Mulinge.
MTN Uganda joins MTN Ghana as MTN operating companies that have advanced significantly in spinning off their MoMo operations as a distinct entity, with plans for potential future listings. MTN Nigeria also has a separate entity for its MoMo operations (MoMo PSB), although its listing status is somewhat different.
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