MTN Uganda plans to separate its fast-growing mobile money business, MTN MoMo, from its main telecom operations—a move that could reshape how the company operates in one of its most important markets.
In a cautionary announcement dated June 11, 2025, the company said it “intends to implement a proposed structural separation and reorganisation of MTN’s wholly owned subsidiary, MTN Mobile Money (U) Limited (‘MTN MoMo’).”
The restructuring, still subject to shareholder and regulatory approval, would mean MTN MoMo is no longer a subsidiary of MTN Uganda. Instead, a newly formed company would take over the mobile money operations.
That new entity would be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing MTN Uganda’s minority shareholders—both institutional and retail.
“This is a Proposed Transaction,” the company said, emphasizing that final approval is still pending. MTN will bring the plan to shareholders at an extraordinary general meeting set for July 2.
A circular outlining the details—dated June 11—was also issued. It contains what MTN called “relevant information relating to the Proposed Transaction to enable MTN shareholders to make an informed decision.”
The circular, according to the company, outlines specific conditions and required approvals, detailed in Part 2, Page 31.
A Fintech Powerhouse
Mobile money is no small side business for MTN Uganda. It processed over UGX 97 trillion (about $25 billion) in transactions last year and serves more than 10 million active users, according to the company’s latest financial report. It now brings in nearly 30% of MTN Uganda’s service revenue.
The decision to split it off is part of a larger global trend. Telecom giants are increasingly unbundling their fintech arms to unlock value and meet regulatory requirements separating financial services from telecom operations.
“The mobile money and financial technology business currently run by MTN MoMo will be operated by a new company,” the company said, adding that ownership will shift once the restructuring is completed.
MTN said the move is in line with Uganda’s Capital Markets (Corporate Governance) Regulations 2025 and the USE Listing Rules 2025. The Uganda Securities Exchange has permitted the announcement to be published but stressed that this “is not to be taken as an indication of the merits of the Proposed Transaction.”
Enid Edroma, MTN’s company secretary, signed off on the announcement, noting that shareholder and regulatory approvals “remain outstanding at this stage.”
In the meantime, MTN urged shareholders and the public to “exercise caution when dealing in MTN shares.”
Legal counsel for the transaction is being handled by S&L Advocates, while Stanbic Bank Uganda is advising on financials.
Bigger Picture
The mobile money sector is under increasing scrutiny in Uganda, where it plays a central role in everyday life—from basic transfers to merchant payments, utility bills, loans, and savings.
The planned separation comes at a time when regulators are pushing for more transparency and clearer boundaries between tech and finance. For MTN Uganda, this could be a way to stay ahead of that curve—while positioning its fintech arm for even greater scale.
Further updates, the company said, will follow as the process unfolds.
