In a landmark decision set to redefine Uganda’s digital and financial landscape, shareholders of MTN Uganda led by Charles Mbire, overwhelmingly approved the structural separation of MTN Mobile Money (U) Limited (MoMo) from MTN Telecom.
This strategic move, unveiled at an Extraordinary General Meeting on July 22, 2025, marks a strategic alignment with MTN Group’s “Ambition 2025” and promises to unlock immense value for shareholders, catalyse innovation for clients, and accelerate the digital transformation of Uganda’s economy.
Sylvia Mulinge, the Chief Executive Officer (CEO) of MTN Uganda, hailed the outcome as a “powerful vote of confidence in MTN Uganda’s growth story.”
She added, “With full shareholder approval for the structural separation of MoMo from MTN Uganda, we’re entering a new chapter in fintech innovation and value creation.”
Unlocking Value for Shareholders
According to Mulinge, the separation is designed to enhance operational focus for both the core telecom business and the rapidly evolving mobile money segment.
She revealed that the newly separated fintech business will be integrated into a new entity, majority-owned by MTN Group Fintech Holdings B.V.
However, important to note for MTN Uganda’s current shareholders, is that their ownership interest in this new fintech entity will be held in a dedicated trust. This innovative structure sets the stage for significant future value creation.
Listing on Stock Exchange Market
Following a medium-term transitional period, and subject to regulatory approvals and favourable market conditions, it is intended that this trust will dissolve.
At that point, the new fintech entity will be slated for a separate listing on the stock exchange.
This means current MTN Uganda shareholders will then hold two separate interests in two separately listed companies: MTN Uganda (the telecom business) and the new fintech entity (MTN MoMo).
This strategy offers shareholders the unique opportunity to participate directly in the distinct growth trajectories of both a robust telecommunications provider and a dynamic fintech innovator, potentially unlocking greater combined value than previously possible.
Mulinge underscored the importance of this process, noting, “We’re especially proud of the trust placed in us by our investors, both institutional and retail, and the active participation of key stakeholders, including our regulators and the Uganda Securities Exchange. Their presence wasn’t just symbolic but signalled the strength of our governance, the transparency of this process, and the shared belief in MTN’s long-term vision for inclusive, digital-led growth.”
Financial Inclusion and Economic Growth
For MTN’s vast client base and Uganda’s broader economy, the separation is set to ignite a new wave of innovation and accessibility in the following ways:
Enhanced Client Experience
By creating a dedicated fintech entity, MTN MoMo will benefit from a sharpened operational focus.
This specialisation is expected to accelerate the development of new mobile money products, improve user experience, and expand the reach of digital financial services, addressing diverse customer needs from peer-to-peer payments to savings, credit, and insurance. This directly supports Uganda’s drive for deeper financial inclusion, reaching the unbanked and underserved.
Accelerated Digital Economy Growth
A focused fintech powerhouse can spur increased adoption of digital payments, e-commerce, and other digital services across all sectors of the economy.
This will streamline transactions, reduce the reliance on cash, and create new opportunities for businesses and individuals, thereby fueling Uganda’s ambition to become a fully digital economy.
Investment and Job Creation
A separately listed fintech entity is likely to attract specialised global and local investors keen on the high-growth potential of digital financial services.
This inflow of capital can lead to significant foreign direct investment (FDI) into Uganda’s technology sector, fostering innovation ecosystems and creating new, high-skill employment opportunities within the growing fintech industry.
Strengthened Governance and Trust
The transparent process of separation and the intent for separate listing reinforce MTN’s commitment to robust corporate governance.
This increased transparency can further boost investor confidence, not just in MTN but also in Uganda’s overall investment climate, encouraging more businesses to leverage digital platforms.
Support for National Development
Mobile money platforms are crucial enablers for government poverty alleviation programs like the Parish Development Model (PDM), Uganda Women Entrepreneurs Programme (UWEP), and Emyooga.
A more agile and specialised MoMo entity can better partner with these initiatives, ensuring efficient and widespread disbursement of funds and fostering economic participation at the grassroots level.
Like Mulinge reiterated, this milestone reinforces MTN Uganda’s long-held belief: “When we build with trust, transparency, and purpose, our journey becomes unstoppable.”
The structural separation of MoMo is thus not just a corporate manoeuvre; it is a profound strategic leap that redefines MTN’s role as a leading force in Uganda’s journey towards a more connected, inclusive, and prosperous digital future.