MTN Uganda Shareholders Approve Mobile Money Separation from Main Telco Business While today’s resolution marks a formal milestone, the road to approval was far from smooth. In the weeks leading up to the extraordinary general meeting, a group of MTN Uganda shareholders warned that, the telco had not disclosed sufficient detail about the transaction, raising concerns over its impact on shareholder rights and asset security.

MTN Uganda’s shareholders have given the green light to a major corporate restructuring that will formally separate the company’s high-performing mobile money business, MTN MoMo, from its core telecom operations.

The move, ratified at a hybrid extraordinary general meeting held today, marks a turning point in Uganda’s financial services and telecom landscape and signals a broader shift toward unlocking value from fast-growing fintech assets.

The decision authorizes the implementation of the “Proposed Transaction,” which involves the legal and operational separation of MTN Mobile Money Uganda Limited (MTN MoMo) from MTN Uganda Limited.

The new standalone entity will be owned by MTN Group Fintech Holdings B.V., with minority Ugandan and retail shareholders holding an indirect interest through a transitional Trust structure.

The separation is part of MTN Group’s wider Ambition 2025 strategy, which envisions transforming the group into a platform-led business and positioning its fintech units for third-party capital injections, partnerships, and eventually, independent listings.

In Uganda, the move is especially significant given the rapid growth of mobile money as a pillar of financial inclusion and digital payments.

Under the newly approved structure, MTN Group Fintech will hold a 76.015% controlling stake in the newly formed MTN New FinCo, while the remaining 23.985% will be held in Trust for MTN Uganda’s minority shareholders.

The Trust arrangement is designed as a temporary mechanism to ensure continued economic benefit and eventual shareholder participation in governance until MTN New FinCo is listed on the Uganda Securities Exchange (USE) within the next three to five years, subject to market and regulatory conditions.

No impact on MTN Uganda shareholding, dividends to flow from both entities.

Charles Mbire, Chairman of the Board, applauded shareholders for backing the landmark decision.

“This move is about unlocking long-term value and staying ahead of global fintech trends. It positions MTN to future-proof our financial services and deliver sustained growth for all our stakeholders.”

Despite the separation, MTN Uganda earlier assured its shareholders that there will be no impact on its current shareholding structure or share capital.

Minority shareholders will retain their existing shares in MTN Uganda and receive dividends from both MTN Uganda and MTN New FinCo—directly from the former and via the Trust from the latter.

“This restructuring reflects MTN Group’s broader strategy to consolidate infrastructure and fintech platforms across Africa to attract third-party capital and partnerships,” the company reiterated in a previous notice from May 2024.

The restructuring also comes in the wake of MTN Group CEO Ralph Mupita’s revelation that the spinoff is part of a continent-wide reorganization aimed at securing a $200 million (UGX 732.2 billion) capital investment from Mastercard into MTN’s fintech operations in Uganda, Ghana, and Nigeria.

Shareholder resistance and regulatory scrutiny

While today’s resolution marks a formal milestone, the road to approval was far from smooth.

In the weeks leading up to the extraordinary general meeting, a group of MTN Uganda shareholders, represented by Reeve Advocates, petitioned the Capital Markets Authority (CMA) and issued a public caveat emptor, warning that MTN had not disclosed sufficient detail about the transaction, raising concerns over its impact on shareholder rights and asset security.

“… we urge fellow shareholders, the public and relevant regulators to exercise caution and seek complete information prior to voting … should the directors not provide this information … we will not hesitate to seek legal redress,” the shareholders’ notice read.

Their concerns highlight a growing demand for transparency and accountability as Uganda’s capital markets mature and as large-scale corporate actions become more complex.

The implementation of the transaction remains subject to regulatory approvals from the Bank of Uganda (BoU), Uganda Communications Commission (UCC), and the Financial Intelligence Authority (FIA), among others. MTN has indicated it will issue further updates as the approvals are secured.

Fintech: Fastest-growing revenue stream

MTN’s decision to unbundle its fintech arm is backed by robust growth in mobile money and adjacent services.

Sylvia Mulinge, MTN Uganda Chief Executive, emphasized the broader impact of the spinoff, describing it as a catalyst for financial empowerment:

“This is more than just a business shift. With a more agile fintech arm, we’re better placed to innovate, scale faster, and create real impact across Uganda.”

In 2024 alone, the combined contribution of mobile money services and the airtime credit product XtraTime reached UGX 947 billion—nearly 30% of MTN Uganda’s UGX 3.2 trillion total revenue.

Fintech earnings grew sharply by 18.4% in the first quarter of 2025 to UGX 256 billion, compared to UGX 216 billion in Q1 2024.

Mobile money services led the charge, rising 19% to UGX 249.5 billion.

Advanced fintech offerings such as micro-loans, savings, and digital marketplaces saw an even faster growth rate of 33.4%, now accounting for 34.1% of fintech revenues.

The telco has also expanded its fintech ecosystem significantly, onboarding over 212,000 active agents and 101,000 merchants as of Q1 2025. Fintech subscriber numbers grew from 12.4 million in Q1 2024 to 13.6 million a year later, reflecting strong user confidence and market penetration.

Richard Yego, MTN MoMo Managing Director, expressed confidence in MoMo’s growth trajectory, positioning the separation as a springboard for regional fintech leadership.

“This milestone clears the runway for MoMo to soar. It’s a key step in building Africa’s biggest fintech platform under Ambition 2025.”

MTN Uganda’s move mirrors a larger continental trend where telcos are separating their fintech and infrastructure units in pursuit of transparency, strategic agility, and external capital.

Safaricom’s planned spinoff of M-Pesa in Kenya is another high-profile example, driven by similar regulatory and market pressures.

With a standalone MTN MoMo poised to operate under MTN New FinCo, MTN Uganda now sets the stage for its fintech ambitions to grow independently.

This potentially is aimed at attracting new investors, forming new partnerships, and increasing its valuation in a rapidly evolving digital economy.