MTN Uganda to Restructure MoMo in 2025 to Drive Fintech Growth
MTN Uganda has planned to restructure its MoMo(Mobile Money) business in accordance with broader industry trends and pan-African fintech ambitions of the MTN Group. In the process, the mobile money operations will be placed under a newly incorporated fintech subsidiary, subject to shareholder and regulatory approvals.
Enid Edroma, Company Secretary of MTN Uganda, confirmed that the company will seek shareholder approval at an Extraordinary General Meeting (EGM) scheduled for July 2, 2025. A circular for the EGM has been issued with the approval of the Uganda Securities Exchange, while Stanbic Bank Uganda and S&L Advocates have been appointed as transaction and legal advisors.
The restructuring follows a growing trend across East Africa as telecom operators seek to unlock the greater value of mobile money by having their fintech units operate as independent entities.
Airtel Money — Split Already Complete
Airtel was the first major telco to completely split its mobile money business in Kenya. This process commenced in 2019, and by October 2022, Airtel Money Kenya Limited had finally been licensed as an independent Payment Service Provider.
Airtel Networks Kenya and Airtel Money Kenya would now function completely independently of one another under the overarching architecture of Airtel Africa. In May 2025, Airtel Africa announced that it planned to list Airtel Money in the first half of 2026, further emphasizing the increasing autonomy and strategic importance of the unit.
M-Pesa — Still Under Safaricom in Kenya
By contrast, M-Pesa remains part of Safaricom PLC. Despite sustained regulatory and political pressure to spin it off, no structural separation has occurred as of June 2025.
Safaricom has argued that M-Pesa’s services are deeply integrated with its telecom operations and has floated the idea of a holding structure instead of a full split. For now, the fintech arm remains under the parent company’s direct control.
M-Pesa Africa — A Joint Venture, Not a Spin-Off
It’s important to clarify that M-Pesa Africa is not a standalone entity spun off from Safaricom. Instead, it is a joint venture between Safaricom and Vodacom Group, established in 2020 to oversee M-Pesa’s operations in countries outside Kenya, including Tanzania, Mozambique, Lesotho, and the DRC. M-Pesa Africa helps unify technology platforms and push innovation like the Super App, but does not change the ownership structure of M-Pesa within Kenya.
Why MTN Uganda’s Move Matters
By separating its MoMo operations, MTN Uganda is positioning itself to:
- Scale fintech offerings more independently
- Unlock investment potential
- Align with MTN Group’s platform strategy in payments, lending, and e-commerce
The restructuring also enables clearer regulatory compliance as financial services evolve separately from core telecom infrastructure.
Investor Caution
MTN Uganda has advised shareholders to exercise caution when dealing in its securities until the transaction details are finalized and regulatory approvals are secured.
Regional Snapshot
| Company | Structure Status | Details |
|---|---|---|
| MTN Uganda | Restructure Pending | MoMo to move into new fintech subsidiary |
| Airtel Money | Spin-Off Complete | Independent as Airtel Money Kenya Ltd since October 2022 |
| M-Pesa (Kenya) | Not Separated | Still fully integrated under Safaricom PLC |
| M-Pesa Africa | Joint Venture | JV between Safaricom & Vodacom for markets outside Kenya |
As Africa’s fintech sector matures, the MTN Uganda MoMo restructure reflects a broader shift by telecoms to unlock digital financial growth independently from their core network services. With Airtel already leading in this space and M-Pesa under growing scrutiny, MTN Uganda’s move could reshape how investors and regulators approach the continent’s mobile money ecosystem.
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