MTN’s fintech firm, which was initially launched in 2009, has grown to become a core pillar of Uganda’s financial ecosystem with more than 13 million customers
Kampala, Uganda | JULIUS BUSINGE | In a defining moment for Uganda’s financial technology landscape, MTN Uganda shareholders have officially approved the structural separation of MTN Mobile Money (U) Limited by 99%, paving the way for its transformation into an independent fintech entity.
The shareholder resolution, passed on July 22 during a hybrid Extraordinary General Meeting (EGM), marks a bold stride in MTN Uganda’s journey toward operational excellence and strategic alignment with the MTN Group’s pan-African vision under Ambition 2025.
This landmark approval initiates the second phase of a three-step process to reposition MTN MoMo as a standalone fintech powerhouse. The newly formed company will be majority-owned by MTN Group Fintech Holdings B.V., a subsidiary of MTN Group, while the remaining shares will be held in trust on behalf of local investors, ensuring the Ugandan public continues to participate in and benefit from its growth.
Speaking at a post-EGM media briefing, Sylvia Mulinge, chief executive officer of MTN Uganda, described the development as more than a corporate restructure.
“This isn’t just a technical milestone,” she said, “It’s a strategic shift.”
She added: “It is a bold new chapter. It is one that positions us to drive digital and financial inclusion in Uganda even further and faster. MoMo is no longer just a product—it is a platform that powers businesses, connects families, and unlocks access to essential services.”
MTN MoMo, which was initially launched in 2009, has grown to become a core pillar of Uganda’s financial ecosystem with more than 13 million customers as at the end of December last year. Following its legal separation under the National Payment Systems Act in 2021, the latest approval propels it further into autonomy. The ultimate goal is to have MoMo listed separately on the Uganda Securities Exchange within the next three to five years, alongside MTN Uganda.
The move comes at a time when agility and innovation are imperative in the fast-paced fintech space. Mulinge emphasized the strategic imperative: “Fintech is a different beast. It needs focus, flexibility, and freedom to grow. By giving MoMo its own structure, we’re giving it the space it needs to scale, innovate, and lead.”
Final stages toward full separation
As the company enters this next chapter, it will begin engaging with key regulatory stakeholders, including the Capital Markets Authority (CMA), Uganda Securities Exchange (USE), Uganda Revenue Authority (URA), and the Uganda Communications Commission (UCC). This regulatory engagement is crucial to obtaining the necessary consents for implementation and is expected to span the next two to three years.
MTN Uganda has enlisted S&L Advocates and Stanbic Bank Uganda Limited as legal and financial advisors to oversee this intricate transaction. The company reiterated its commitment to transparent, inclusive stakeholder engagement throughout the transition.
Richard Yego, managing director of MTN MoMo, expressed readiness and enthusiasm for the next phase. “As part of our Ambition 2025, building the largest digital platforms was one of the pillars,” he said.
“The structural separation is part of the journey of building the largest fintech platform in Africa. We are happy that the shareholders have given this approval. Once the separation is complete, we shall be able to serve our customers better. My team is ready—we can hit the ground running immediately.”
MTN Uganda has made deliberate efforts to ensure shareholders were fully informed and engaged in the decision-making process. From detailed circulars to regional town halls and vernacular radio campaigns, the company ensured that investors, many of whom are first-time shareholders, understood the implications, opportunities, and risks involved.
Charles Mbire, chairman of the MTN Uganda Board of Directors, acknowledged the gravity and strategic foresight behind the decision.
“This is not just strategy. This is stewardship,” Mbire said. “As both a custodian and a co-investor, I feel confident in the path we’re on. This separation is a clear signal that we are evolving into a modern, tech-forward company in line with global best practices.”
Despite the corporate transformation, MTN emphasized that the customer experience will remain uninterrupted. All mobile money services will continue as usual under the MTN MoMo brand, even as the company restructures behind the scenes to better meet future demands.
The structural separation aligns not only with MTN Group’s ambition to lead Africa’s digital transformation but also with Uganda’s broader goals to modernize its economy through financial inclusion, innovation, and access.
As Uganda takes a giant leap into the fintech future, MTN Uganda’s leadership, shareholders, and regulatory partners appear united in their commitment to ensuring that this bold move delivers shared value—for customers, investors, and the country at large. With strong governance, unwavering shareholder trust, and regulatory collaboration on the horizon, Uganda’s fintech evolution is not just imminent—it’s inevitable.