MTN Uganda has secured shareholder approval to separate its financial technology operations into a new company, MTN Mobile Money Uganda Limited, marking a key step in its revenue diversification strategy. The decision was ratified at a general meeting held on July 22, 2025.
This move aligns with MTN Group’s strategic shift to unlock value from its fintech business across Africa. In recent years, MTN has executed similar spin-offs in Nigeria and Ghana, positioning its fintech arms as independent entities for better operational and financial clarity.
Plans to spin off MTN Mobile Money Uganda Limited were announced in January 2025 but were awaiting shareholder and regulatory approval.
Meanwhile, in Uganda, the spin-off also complies with the National Payment Systems Act 2020, which mandates separating mobile money operations from core telecom services. MTN MoMo Uganda has already secured a licence from the Bank of Uganda to operate independently.
According to MTN Uganda CEO Sylvia Mulinge, the restructuring will enhance corporate governance and regulatory alignment. More critically, it sets the stage for potential capital raises or even a public listing. MTN Group plans to retain majority ownership of the new fintech unit through its subsidiary, MTN Group Fintech Holdings.
The fintech unit has shown strong performance. In Q1 2025, MTN MoMo Uganda recorded an 18.4% year-on-year revenue increase, earning $70.8 million. This contributed significantly to MTN Uganda’s service revenue, which grew by 15.5% to $184.7 million, driven in part by a 32.5% rise in data and fintech revenue.
As telecom markets mature across Africa, fintech is emerging as a key growth engine for companies like MTN. The creation of stand-alone fintech firms not only improves transparency but also attracts private equity and capital market interest. The company aims to list the new fintech entity on the Uganda Securities Exchange in three to five years.
For customers, there will be no disruption. MTN Uganda’s mobile money services will continue under the MTN MoMo brand, and existing agreements with customers will transfer to the new company.
MTN Uganda’s strategy follows similar restructuring efforts in Nigeria and Ghana, where regulators are increasingly calling for clearer operational boundaries between telecom and financial services.
With this latest milestone, MTN Uganda is positioning itself to thrive in a rapidly growing digital finance market — where financial inclusion meets investor appetite.
