MTN Uganda plans mobile money spin-off

MTN Uganda plans to spin off its mobile money arm, MTN MoMo, into a separate entity, a move that could alter the structure of its business in one of its largest African markets.

In a regulatory filing last week, the company said it “intends to implement a proposed structural separation and reorganisation of MTN’s wholly owned subsidiary, MTN Mobile Money (U) Limited (‘MTN MoMo’).” The transaction remains subject to shareholder approval and clearance from regulators.

Under the proposal, MTN MoMo would cease to be a direct subsidiary of MTN Uganda and instead be transferred to a newly created company. Ownership of that company would be shared between MTN Group Fintech Holdings B.V., which oversees MTN’s global fintech strategy, and a trust representing MTN Uganda’s minority shareholders, including both institutional and retail investors.

MTN Uganda has called an extraordinary general meeting for July 2, at which shareholders will vote on the plan. A circular issued on June 11 provides details of the proposed transaction and the conditions that must be met before it can proceed.

The spin-off underscores the growing importance of mobile money to MTN Uganda’s overall performance. In its latest financial disclosures, MTN said MTN MoMo processed more than Shs 97 trillion ($25 billion) in transactions last year, serving over 10 million active users and generating nearly 30% of the company’s total service revenue.

Telecom operators worldwide have increasingly separated their financial services units to unlock shareholder value and address new regulatory requirements that call for clear divisions between telecom and financial services operations.

“The mobile money and financial technology business currently run by MTN MoMo will be operated by a new company,” the filing said, adding that the ownership structure will be finalised once the reorganisation is complete.

MTN Uganda said the plan complies with the Uganda Capital Markets (Corporate Governance) Regulations 2025 and the Uganda Securities Exchange Listing Rules 2025. The bourse granted permission for the announcement but noted that its approval does not imply an endorsement of the transaction’s merits