MTN Uganda has won shareholder approval to spin off its mobile money and fintech arm into a new entity, a step the company says is central to its long-term strategy.
The vote came during an extraordinary general meeting (EGM) held Tuesday in a hybrid format. Shareholders overwhelmingly supported the move, clearing the way for MTN Mobile Money Uganda Limited—commonly known as MTN MoMo—to merge into a separate company.
If regulators sign off, most of the new firm will be owned by MTN Group Fintech Holdings B.V. A smaller portion will be held in a trust that maintains value for MTN Uganda’s minority shareholders, both institutional and retail.
“We are grateful to our shareholders for their confidence and backing of this strategic step,” said Charles Mbire, chair of MTN Uganda’s board. “This transaction aligns with global market trends and is designed to unlock value for our shareholders while future-proofing the fintech business.”
He added, “The Board is confident that this decision is in the long-term interest of all stakeholders.”
Sylvia Mulinge, the company’s chief executive, said the vote marked “a significant milestone in our journey to accelerate financial and digital inclusion in Uganda.”
She said the separation would sharpen the company’s operational focus. “It enables us to drive sharper operational focus, enhance agility, and unlock greater efficiency to deliver superior shareholder value and transform lives through digital innovation.”
The structural changes are part of a broader realignment across MTN Group, which has been pushing its Ambition 2025 strategy—an effort to build Africa’s largest digital and fintech platforms.
Richard Yego, CEO of MTN MoMo Uganda Ltd, said the separation fits into that plan. “As part of our Ambition 2025, building the largest digital platforms was one of the pillars,” he said.
He added, “We have done quite a lot, and we are happy that the shareholders have given this approval. Once the separation is complete, we shall be able to serve our customers better.”
The transaction still requires regulatory approvals. MTN Uganda says it is working with the necessary authorities to secure the required consents and ensure what it described as a seamless transition.
