MTN MoMo Uganda Separation Gains Momentum with High-Level Stakeholder Engagements MTN MoMo Uganda’s spin-off gains pace with regulator engagements, 99.9% shareholder backing, and a 3–5 year path to a standalone fintech listing.

The structural separation of MTN MoMo Uganda, a move that will see the country’s largest mobile money business operate as an independent, Bank of Uganda–licensed fintech company is gathering significant momentum.

Following overwhelming shareholder approval in July, MTN Group Fintech Directors were in Kampala this week to reaffirm their confidence in MoMo Uganda’s “growth journey as a standalone fintech entity” and to deepen engagement with key regulators and partners.

In a statement on its official LinkedIn page, MoMo Uganda revealed that the Directors “held strategic engagements with key stakeholders including the Bank of Uganda, Uganda Revenue Authority (URA), Financial Intelligence Authority, Uganda Communications Commission, and the Ministry of Finance Planning and Economic Development.”

The discussions, the company noted, highlighted a “shared commitment to advancing financial inclusion and fostering innovation.”

The visit culminated in a networking dinner attended by senior figures from across Uganda’s financial and regulatory ecosystem.

Among them was Dr. Michael Atingi-Ego, Governor of the Bank of Uganda, who served as guest of honor, “reflecting the strong partnerships driving Uganda’s fintech ecosystem forward,” MoMo Uganda said.

From Legal Compliance to Strategic Restructuring

Uganda’s journey toward this separation began with the National Payment Systems Act, 2020, which required mobile money operations to be housed in separately licensed entities under Bank of Uganda oversight.

MTN responded by incorporating MTN Mobile Money (U) Ltd in November 2020 and transferring its mobile money business into the new subsidiary in June 2021.

That first step met the legal requirement but MTN Group’s Ambition 2025 strategy envisions much more: a complete corporate separation of its fintech operations from the core telecom business across all markets, unlocking value, attracting strategic investors, and creating focused growth platforms.

The Uganda Separation Plan

According to the shareholder circular issued on 11 June 2025 and the supplementary circular on 30 June 2025, MTN Uganda’s current phase of separation involves amalgamating MTN MoMo (U) Ltd into a new entity, MTN New FinCo.

This new company will remain licensed by the Bank of Uganda and will be majority-owned (76.015%) by MTN Group Fintech Holdings B.V.

The remaining 23.985% will be held in a Trust for the benefit of MTN Uganda’s minority shareholders, until an eventual listing by introduction on the Uganda Securities Exchange in approximately three to five years, when the Trust will be “unbundled” and those shareholders will directly hold New FinCo shares.

The plan also includes a “dividend adjustment share” to ensure equitable dividend distribution between MTN Uganda and the new fintech entity during the transition period.

Shareholder and Regulatory Buy-In

On 22 July 2025, MTN Uganda’s shareholders voted overwhelmingly with about 99.9% in favour to approve the transaction.

Completion now hinges on securing final regulatory consents from the Bank of Uganda, Capital Markets Authority, and Uganda Securities Exchange.

MTN has also outlined a retail minority “opt-out” mechanism for those shareholders who prefer not to participate in the Trust arrangement, with a 14-day window for exercising that option once the process is activated.

Part of a Group-Wide Fintech Carve-Out

While Uganda is the first listed MTN operation to secure shareholder approval for such a separation, it is part of MTN Group’s Africa-wide push to ring-fence and scale its fintech arm.

At the group level, MTN has already attracted external investment — most notably Mastercard’s minority stake acquisition in MTN Group Fintech at a valuation of US$5.2 billion.

The long-term goal is to operate telecom and fintech as distinct businesses, with the latter potentially pursuing separate listings or partnerships in different markets.

A Central Pillar of MTN’s Fintech Ambition

In the LinkedIn post, MoMo Uganda stressed that “Uganda remains a central pillar of MTN Group’s fintech strategy” and is “ready to scale secure, affordable, and transformative financial services for millions.”

With this week’s high-level engagements and visible regulatory goodwill, the process is not only on track but accelerating positioning Uganda to be a model case for MTN’s broader fintech carve-out strategy across the continent.