MTN Uganda is proceeding with the structural separation of its mobile money business, MTN MoMo, from its core telecommunications operations.
This is primarily in response to Uganda’s National Payment Systems Act 2020 and is an important part of the MTN Group’s strategy to enhance value from its fast-expanding financial technology services.
The National Payment Systems Act 2020 explicitly requires mobile money operators to establish distinct legal entities for their financial services.
The Act states, “A payment service provider, other than an entity solely established to issue electronic money, a financial institution or microfinance deposit taking institution, that intends to issue electronic money shall establish a subsidiary legal entity for that purpose.” (Section 48(1)).
Again, it prevents telecom operators from using airtime as a substitute for money, clarifying that “An electronic money issuer shall not— (a) count or issue airtime as electronic money; or (b) use airtime for permissible transactions.” (Section 55(2)).
These stipulations necessitate a clear demarcation between mobile money and traditional telecom services.
This restructuring also aligns with the “Ambition 2025” strategy of the Johannesburg-listed MTN Group.
The group is creating standalone fintech entities across its key African markets, including Ghana and Nigeria, to unlock new value, attract investors, and ensure solid regulatory adherence.
For instance, MTN Ghana launched “New FinCo” in May 2025, and MTN Nigeria established MoMo PSB under a Payment Service Bank licence.
The proposed transaction will see MTN Mobile Money Uganda transferred to a new, independent entity. This new company will be owned by MTN Group Fintech Holdings B.V. and a trust established to represent the interests of MTN Uganda’s minority shareholders.
The separation aims to enable both the mobile money and telecommunications businesses to pursue their respective growth paths independently within the East African market.
MTN MoMo already holds a strong footprint, particularly across West and Central Africa, with approximately 14 million active subscribers in Uganda alone.
The mobile money services ascertained commendable growth in the first quarter of 2025, with revenues increasing by 18.4% to reach $70.8 million (Ush 255.6 billion). This financial performance stresses mobile money’s growing significance as a revenue driver, at times even surpassing traditional telecoms revenues in key regions.
The formal approval for this separation will be sought from shareholders at an Extraordinary General Meeting (EGM) scheduled for 2nd July 2025. This meeting will be conducted in a hybrid format, allowing for both physical and electronic participation.
If approved, the transaction will result in MTN MoMo ceasing to operate as a direct subsidiary of MTN Uganda.
Even with this internal restructuring, MTN Uganda’s listing on the Uganda Securities Exchange, where it has been an actively traded stock since its 2021 initial public offering, will not be affected.
The transaction is subject to final regulatory and shareholder approvals.
