MTN MoMo Uganda Prepares to Spin Off as Independent Fintech to Boost Digital Financial Services
As MTN prepares to spin off its MoMo operations, Uganda’s mobile money landscape is set for a significant transformation with new opportunities for fintech innovation.
MTN Uganda is entering a new phase as it prepares to restructure its mobile money business, MTN MoMo, into a standalone fintech subsidiary. The move reflects a strategic pivot aligned with the MTN Group’s broader pan-African ambitions. With shareholder and regulatory approvals now secured, MoMo is set to operate independently—a shift that analysts say could transform Uganda’s digital financial landscape.
During an Extraordinary General Meeting on July 22, 2025, MTN Uganda received shareholder approval to separate its mobile money and fintech operations from the core telecom business. The decision marks a key milestone in MTN Group’s Ambition 2025 strategy, reinforcing its goal to lead Africa’s digital solutions and expand financial inclusion across the continent.
MTN Uganda’s proposed structural separation of its mobile money arm, MTN Mobile Money (U) Limited (MoMo), is being guided by Stanbic Bank Uganda and S&L Advocates. These entities are serving as the financial and legal advisors, respectively, overseeing the transaction. The Uganda Securities Exchange (USE) has granted permission for the issuance of the shareholder circular, which is a critical step in the process.
The initiative mirrors a growing trend in East Africa where telecom operators are unlocking the full potential of mobile money by spinning off fintech operations from core telecom services. Airtel Money in Kenya completed this journey in 2022, operating now as an independent Payment Service Provider under Airtel Africa. M-Pesa, by contrast, remains tightly integrated with Safaricom, with its broader African operations managed through a joint venture with Vodacom.
| Company | Structure Status | Details |
|---|---|---|
| MTN Uganda | Restructure Pending | MoMo to move into a newly incorporated fintech subsidiary, pending shareholder and regulatory approval. Aligns with MTN Group’s pan-African fintech ambitions. |
| Airtel Money (Kenya) | Spin-Off Complete | Operates independently as Airtel Money Kenya Ltd since October 2022. Part of Airtel Africa. |
| M-Pesa (Kenya) | Not Separated | Still fully integrated under Safaricom PLC. No structural separation as of June 2025. |
| M-Pesa Africa | Joint Venture | JV between Safaricom and Vodacom for operations outside Kenya (Tanzania, Mozambique, Lesotho, DRC). Manages cross-border tech and innovation but does not alter Kenyan ownership structure. |
Herman Bosman, chair of the MTN Group Fintech board, described Uganda as one of the company’s most strategic markets. “Our engagement with regulators and government institutions is critical,” he said. “Sustainable growth and financial inclusion require strong partnerships, not just ambition.”
During recent visits to Uganda, MTN Group fintech directors met with the Bank of Uganda, Uganda Revenue Authority (URA), Financial Intelligence Authority (FIA), Uganda Communications Commission (UCC), and the Ministry of Finance. The discussions centered on regulatory alignment, safeguarding financial integrity, and promoting innovation in the mobile money ecosystem.
CEO Sylvia Mulinge emphasized collaboration as the cornerstone of MTN’s fintech strategy. “MoMo’s growth cannot happen in isolation,” she said. “It requires close coordination with regulators, government, and industry peers to ensure it meets the needs of both consumers and the wider financial ecosystem.”
The spin-off positions MTN MoMo Uganda to scale its fintech offerings more rapidly, pursue new investment opportunities, and integrate seamlessly into MTN Group’s broader platform strategy that spans payments, lending, and e-commerce. Analysts suggest this independence will allow the company to innovate faster, introduce new products, and respond to market dynamics without being constrained by telecom operations.
Uganda’s mobile money sector is among the most vibrant in Africa, with penetration rates surpassing 70% of adults. MTN’s restructuring signals an intent to remain competitive against peers like Airtel and respond to growing consumer demand for more sophisticated digital financial services.
Investors have been cautioned to approach MTN Uganda’s securities with care until all regulatory approvals are finalized. Nevertheless, the move aligns with a continental trend toward fintech independence, reflecting a broader strategy to leverage mobile money as a growth engine beyond traditional telecom networks.
As MTN MoMo Uganda charts its course, stakeholders will be watching closely. The spin-off could redefine digital finance in the country, giving MTN greater agility while contributing to Uganda’s ongoing journey toward broader financial inclusion.
This restructuring aims to position MoMo as a standalone fintech entity, aligning with MTN Group’s broader Ambition 2025 strategy. The goal is to enhance operational focus, drive financial and digital inclusion, and deliver long-term value for shareholders. The new fintech entity is intended to be majority-owned by MTN Group Fintech Holdings B.V., with the remaining shares held through a trust structure, ensuring continued benefit for MTN Uganda’s institutional and retail shareholders. The eventual plan is to list the new entity on the Uganda Securities Exchange within a three- to five-year period.
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