MTN Uganda has announced plans to separate its mobile money business MTM MoMo from telecommunications operations.
The proposed separation comes amid growing scrutiny of the mobile money sector, which has become deeply embedded in Uganda’s financial ecosystem facilitating person-to-person transfers, merchant payments, utility bill payments, savings, loans, and insurance products for millions of users.
MTN Uganda said the transaction is still subject to regulatory and MTN shareholders’ approvals. Shareholders are expected to vote on the transaction at an extraordinary general meeting on July 2.
According to the company’s latest financials, MTN MoMo processed over UGX 97 trillion ($25 billion) in transactions in 2024, with more than 10 million active mobile money subscribers in Uganda. The segment contributes nearly 30% of MTN Uganda’s service revenue, underlining its strategic importance."
The plan will eventually lead to the listing of the former on the Uganda Uganda Securities Exchange (USE) in the next three to five years.
The company emphasized that this is a “Proposed Transaction” and remains subject to shareholder and regulatory approvals.
The company also advised shareholders and the public to “exercise caution when dealing in MTN shares” during the ongoing process, adding that “further announcements regarding the status of the Proposed Transaction will be made in due course.
The proposed restructuring will transfer MTN Mobile Money Uganda to a new entity owned by MTN Group Fintech Holdings B.V. and a trust acting on behalf of the minority shareholders of MTN.
