MTN Uganda has secured shareholder approval for a major structural transformation aimed at enhancing its financial technology strategy. In a resolution passed during an extraordinary general meeting held on Tuesday, the company confirmed plans to separate its mobile money business, MTN MoMo, into a new entity to be operated under MTN Group Fintech Holdings B.V.
The decision, endorsed by a special resolution, marks a significant milestone in the telecom operator’s broader ambition to establish a more agile and innovation-driven fintech ecosystem across Africa. According to the notice issued by MTN Uganda’s Company Secretary, Enid Edroma, the approval grants management the authority to implement all aspects of the proposed transaction.
“Approval of the Proposed Transaction, and authorisation of the Company to enter into and implement the Proposed Transaction, the transaction agreements and to take all such other actions incidental to the implementation of the Proposed Transaction,” the statement reads.
The “Proposed Transaction”, as detailed, involves transferring the operation of MTN MoMo’s mobile money and digital financial services into a newly formed company following a corporate amalgamation. The new entity will be owned by MTN Group Fintech Holdings B.V., with minority stakes allocated to institutional and retail investors.
MTN MoMo, one of Uganda’s leading mobile money services, has played a pivotal role in driving financial inclusion by enabling millions of Ugandans to access digital payment, savings, and transfer services. The spin-off aims to separate telecom infrastructure from financial services, creating a leaner and more specialized fintech unit with potential for regional expansion and strategic partnerships.
According to the company, the initiative is designed to better align operations with the MTN Group’s “Ambition 2025” strategy, which focuses on building the largest and most valuable platform business in Africa by leveraging digital services and financial technology.
The implementation of the MTN MoMo separation is conditional upon the receipt of various regulatory approvals and no-objection letters from relevant authorities. Both MTN Uganda and the newly formed fintech entity must comply with applicable legal and regulatory frameworks before the transaction can be finalized.
The Uganda Communications Commission (UCC), which regulates telecom and mobile money operations, is expected to play a key role in overseeing the transition. MTN Uganda emphasized its commitment to full compliance and pledged to issue further updates as the transaction progresses.
“The implementation of the Proposed Transaction shall be subject to a number of conditions, including the Company and MTN MoMo receiving all required regulatory approvals and no-objections and complying with any regulatory conditions,” the notice stated.
MTN Uganda has engaged S&L Advocates as the legal advisor and Stanbic Bank Uganda as the financial advisor for the proposed transaction. These partnerships underscore the company’s commitment to ensuring a smooth, legally sound, and financially viable transition.
With over 20 million mobile money subscribers in Uganda, the growth potential for a standalone fintech operation is considerable. The reorganization could also open the door to public listings or strategic equity partnerships that inject further liquidity and innovation into the market.
While the final timeline for completing the MTN MoMo separation dependent on regulatory clearance, MTN Uganda’s leadership has affirmed that further announcements will be made in due course.
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