MTN Uganda to Spin Off MoMo Fintech Unit, Seeks Shareholder Approval

MTN Uganda has announced plans to separate its mobile money service, MoMo, from its telecommunications operations. This strategic move aims to enhance the value proposition of MoMo by positioning it as an independent fintech company. The separation is expected to allow both entities to pursue new opportunities across the East African region.

The proposed transaction is subject to regulatory approval and a vote from the company’s shareholders. MTN Uganda’s management, led by CEO Sylvia Mulinge and MTN MoMo Uganda MD Richard Yego, held a Town Hall strategic meeting with shareholders to discuss the development. The official announcement and acquisition details will be shared during the company’s Extraordinary General Meeting in July.

Under the ownership plan, the new fintech entity will be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders of MTN Uganda. Once approved, MTN MoMo Uganda will cease to be a subsidiary of MTN Uganda, and its mobile money and financial technology business will be operated by a new company following a company amalgamation.

MTN Uganda’s listing on the Uganda Securities Exchange will remain unaffected, and the company will continue trading its mobile network business. MTN MoMo currently has over 60 million active subscribers across West and Central Africa. In Uganda, its mobile money services grew 18.4% to $70.8 million with over 14 million subscribers in Q1 2025.

MTN Uganda achieved service revenue growth of 13.5%, reaching $234 million. This growth was driven by strong performance in data and fintech revenue, which grew by 32.5% and 18.4% respectively. Profit after tax increased by 20.6% to $50.4 million, with earnings per share reaching $0.0023.

MTN’s move to diversify its Ugandan mobile money operation contrasts with its strategy in Nigeria, where it recently acquired full ownership of MoMo Payment Service Bank (MoMo PSB) to strengthen its position in the financial services sector. In late 2024, MTN Nigeria acquired MoMo PSB, which had previously been partially owned by Acxani Capital. The total cost of the acquisition was N16.35 billion, with an additional N9.4 billion invested in MoMo afterwards.

Mobile money services have become a pivotal part of the telecom operators’ business in Africa, driven by an increase in smartphone penetration and digital payments adoption. MTN’s strategic move follows Airtel Africa’s plan to list its mobile money unit, Airtel Money, in the first half of 2026, aiming to capitalize on the growing demand for digital payment offerings across Africa.