(KAMPALA) – Shareholders of MTN Uganda have approved the separation of the company’s mobile money services from its main telecommunications operations. The decision will see MTN Mobile Money Uganda Ltd become an independent entity under the new proposed name, MTN New FinCo, pending regulatory approval.
The move is part of a wider strategic shift by MTN Uganda to give its financial services arm greater autonomy to grow and compete in the rapidly evolving fintech market. The company said the separation will allow MTN New FinCo to focus solely on financial technology, improving its ability to innovate and scale in line with international trends.
Chief Executive Officer Sylvia Mulinge explained the rationale behind the split, stating that mobile money, known locally as MoMo, requires a different operating model from traditional telecom services.
“Fintech is a different beast. It moves fast. It needs focus, flexibility and freedom to grow. By giving MoMo its own structure, we are creating the space it needs to scale, innovate and lead,” she said.
Ms Mulinge added that the change is aligned with MTN Group’s Ambition 2025 plan to drive digital solutions across Africa. She also noted that the new structure would help unlock value for shareholders and improve operational focus.
According to financial reports, MTN’s mobile money services have become a key driver of growth. The fintech division closed the financial year with assets valued at 1.63 trillion Ugandan shillings (about $45 million). This figure places MTN ahead of its closest competitor, Airtel Uganda, which ended the year with mobile money assets worth 1.01 trillion Ugandan shillings (about $28 million).
MTN also led in customer mobile money balances, holding 1.37 trillion Ugandan shillings ($38 million), almost double that of Airtel. Despite this performance, mobile money earnings still trail behind MTN’s traditional voice revenues, prompting the company to seek stronger investment and focus in the fintech space.
Charles Mbire, Chairperson of MTN Uganda’s Board, praised the shareholder decision.
“We are grateful to our shareholders for their confidence in this strategic shift. This transaction is designed to unlock value for our shareholders while future proofing the fintech business,” he said.
Once approved, MTN New FinCo will be majority owned by MTN Group Fintech Holdings B.V., holding 76.015 percent of shares. The remaining shares will be held in a trust on behalf of MTN Uganda’s shareholders, including over 20,000 retail investors.
The long term goal is to prepare MTN New FinCo for an eventual listing on the Uganda Securities Exchange within three to five years. This would make it one of the first standalone fintech firms to be publicly traded in the region.
Uganda’s mobile money market remains highly competitive and continues to grow, with both MTN and Airtel expanding their digital services to rural areas. In May 2025, Airtel rolled out 4G network services in Kazo District, one of many moves by operators to enhance digital inclusion.
The separation of MTN’s fintech arm is also of interest to financial observers in South Sudan, where mobile money adoption has begun to increase in urban areas, particularly Juba. Cross border digital finance and mobile wallet services are likely to benefit from regional innovations and partnerships influenced by MTN’s strategic changes.
For South Sudan, where formal banking remains limited and mobile penetration continues to grow, developments like MTN’s fintech restructuring in Uganda could signal opportunities for collaboration, investment and financial inclusion across borders.
