MTN Uganda to Spin Off Mobile Money Arm as Standalone Fintech Company
TLDR
- MTN Uganda has announced plans to separate its mobile money unit, MTN MoMo, into an independent fintech company
- The new entity will be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders of MTN Uganda
- The transaction remains subject to regulatory approval and a shareholder vote, scheduled for July 2 at an extraordinary general meeting.
MTN Uganda has announced plans to separate its mobile money unit, MTN MoMo, into an independent fintech company, marking a strategic shift aimed at unlocking more value from its fast-growing payments business.
The new entity will be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders of MTN Uganda. The transaction remains subject to regulatory approval and a shareholder vote, scheduled for July 2 at an extraordinary general meeting.
If approved, the restructuring will result in MTN MoMo ceasing to be a subsidiary of MTN Uganda. The mobile money operations will be transferred to the newly created fintech company through a company amalgamation process.
MTN Uganda’s listing on the Uganda Securities Exchange will remain unaffected. The company, one of the exchange’s most active stocks since its 2021 IPO, will continue trading its telecom business as usual.
Daba is Africa's leading investment platform for private and public markets. Download here
Key Takeaways
MTN Group’s decision aligns with its broader strategy to separate high-growth digital financial services from core telecom operations. As mobile money revenue growth continues to outpace voice and data in markets like Uganda, MTN is positioning itself to scale both businesses independently. MTN MoMo recorded 18.4% year-on-year growth in Q1 2025, generating $70.8 million (Ush 255.6 billion), with over 14 million active users in Uganda alone. The planned separation could open the door for future fundraising, partnerships, or even a fintech IPO, although no such plans have been confirmed. The move mirrors Airtel Africa’s strategy, which includes listing its Airtel Money unit in 2026. These structural shifts reflect growing investor interest in Africa’s digital payments space, where smartphone penetration and cashless transactions are accelerating. By spinning off MoMo, MTN can potentially unlock more shareholder value, focus on financial innovation, and improve regulatory agility in the rapidly evolving fintech landscape.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.