Shareholders of Ugandan telco MTN have resolved to spin off the company’s mobile money and financial services branch, which will run independent of its communications business.

 

It means MTN Mobile Money Uganda Ltd is set for a change to a new brand – MTN New FinCo, if regulators approve the decision. The separation is aimed at giving the fintech arm the autonomy to thrive in a fast-evolving market.“You may ask why split MoMo (MTN Mobile Money) from our core telecom business?” Sylvia Mulinge, the CEO of MTN Uganda, asked.“Because fintech is a different beast. It moves fast. It needs focus, flexibility and freedom to grow. By giving MoMo its structure, we’re giving it the space it needs to scale, innovate and lead,” she explained, adding that the move unlocks value for shareholders, sharpens strategic focus and aligns with international best practice.“It’s a critical part of our Ambition 2025 to lead digital solutions for Africa’s progress,” she said.

The adjustment follows a report that indicated MTN Uganda’s mobile money unit was a significant growth engine for the firm. The unit closed the year with USh1.63 trillion ($45 million) in assets, outpacing competitor Airtel Uganda’s USh1.01 trillion ($28 million). MTN also leads in customer mobile money balances, holding USh1.37 trillion ($38 million), nearly twice its closest competitor.

Despite the strong performance, mobile money revenue still lags behind traditional voice services, underscoring the need for renewed strategic focus and investment.

MTN plans to position the newly created MTN New FinCo for future equity injections, with a goal of listing the standalone fintech business on the Uganda Securities Exchange in three to five years.

Read: MTN Group nets $30 million from sale of 1.5bn shares in Ugandan subsidiaryCharles Mbire, Chairperson of MTN Uganda’s Board, hailed the shareholder support: “We are grateful to our shareholders for their confidence and backing this step. This transaction is designed to unlock value for our shareholders while future-proofing the fintech business.”Ownership of MTN New FinCo will be held 76.015 per cent by MTN Group Fintech Holdings B.

V, with the remaining placed in a trust for MTN Uganda shareholders. In the interim, a shareholder trust will be created to manage shares for the more than 20,000 retail investors.

Uganda’s mobile money market remains highly competitive, driven by mobile wallet penetration and digital adoption. MTN and Airtel continue to expand their reach, including rural rollouts like Airtel’s May 2025 expansion of 4G network to Kazo District, aimed at boosting digital inclusion.

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