MTN Uganda is accelerating the separation of its mobile money business, MTN Mobile Money Uganda Limited (MTN MoMo), to comply with the National Payment Systems Act 2020 and align with MTN Group’s regional fintech strategy.
The company plans to seek shareholder approval for this restructuring at an Extraordinary General Meeting (EGM) scheduled for 2 July 2025.
The proposal involves spinning off MTN MoMo from MTN Uganda’s telecom operations to create a standalone fintech entity that meets regulatory and operational requirements.
This separation is mandated by Uganda’s National Payment Systems Act 2020, which requires mobile money operators to establish separate legal entities for issuing electronic money (Section 48(1)).
The Act also prohibits telecom operators from using airtime as a substitute for money, reinforcing the need for clear operational separation between mobile money and telecom services (Section 55(2)).
MTN Group is pursuing similar fintech separations in other African markets as part of its Ambition 2025 strategy, which aims to unlock value, attract investors, and strengthen regulatory compliance.
In Ghana, MTN launched a new fintech company in May 2025 with plans to list it on the Ghana Stock Exchange within 3–5 years. In Nigeria, MTN has launched a Payment Service Bank, growing fintech revenue significantly despite regulatory delays in full separation. MTN Uganda’s board approved the separation plan in March 2025, targeting completion by mid-2025.
The restructuring will be executed through a merger whereby MTN Mobile Money (U) Limited will merge with a newly formed company, MTN New FinCo, which will be jointly owned by MTN Group Fintech Holdings B.V. and a trust benefiting minority shareholders holding 23.9% of MTN Uganda.
MTN New FinCo will operate under the National Payment Systems Act as a provider of payment systems and digital financial services, with plans for a future listing on the Uganda Securities Exchange.
The transaction requires regulatory approvals from the Bank of Uganda, Uganda Revenue Authority, Capital Markets Authority, Uganda Securities Exchange, and the labour commissioner. MTN has assured stakeholders that mobile money and fintech services will continue uninterrupted during the transition.
Following the separation, MTN Uganda will no longer consolidate the earnings of its telecom and mobile money businesses. Instead, shareholders will receive separate earnings reports and dividends from each entity, while retaining governance rights in both.
MTN has cautioned shareholders to exercise care when trading shares during this period and will provide further updates as the process unfolds.
