Business
MTN Uganda Shareholders Approve Landmark MoMo Separation, Ushering in a New Era of Fintech Growth and Economic Inclusion
In a transformative decision set to reshape Uganda’s fintech and telecommunications landscape, shareholders of MTN Uganda have overwhelmingly approved the structural separation of its mobile money arm, MTN Mobile Money Uganda Limited (MoMo), from the core telecom business. The move was sanctioned during an Extraordinary General Meeting held on July 22, 2025, aligning with MTN Group’s ambitious “Ambition 2025” strategy.
This milestone paves the way for MoMo to operate as an independent fintech entity, with the potential to unlock new shareholder value, accelerate digital innovation, and deepen financial inclusion across Uganda.
Sylvia Mulinge, MTN Uganda’s Chief Executive Officer, described the decision as a “powerful vote of confidence in MTN Uganda’s growth story.”
“With full shareholder approval for the structural separation of MoMo, we’re entering a new chapter in fintech innovation and value creation,” said Mulinge. She emphasized that the move allows both the telecom and fintech segments to operate with sharper focus and agility, creating distinct growth trajectories for each business.
One of the most impactful aspects of the separation is the future listing of MoMo as a standalone fintech entity. In the interim, MTN Uganda shareholders will retain ownership through a dedicated trust, which will hold their interests in the newly formed MoMo entity.
Following a transitional period, and pending regulatory approvals and market conditions, the trust will be dissolved, and shareholders will directly hold stakes in both MTN Uganda (telecoms) and the new fintech company (MoMo).
“This dual investment pathway is a unique opportunity,” Mulinge noted, “allowing shareholders to benefit from two high-growth sectors: telecoms and fintech.”
Catalysing Uganda’s Digital Economy
Beyond shareholder value, the structural separation promises to accelerate Uganda’s journey toward a digitally inclusive economy. As a standalone fintech powerhouse, MoMo will benefit from operational autonomy, enabling it to:
- Enhance client experiences through tailored mobile financial services.
- Develop new digital products in savings, credit, insurance, and e-commerce.
- Drive financial inclusion by reaching underserved and unbanked populations.
- Support government programs such as the Parish Development Model and UWEP through efficient fund disbursement mechanisms.
The transparent and participatory process—backed by key stakeholders including the Uganda Securities Exchange and financial regulators—signals strong governance and institutional trust in MTN’s long-term digital vision.
Mulinge underscored this, stating, “We’re especially proud of the trust placed in us by institutional and retail investors, regulators, and the market at large. This is a statement of MTN’s commitment to building with transparency and purpose.”
Analysts believe this move positions Uganda at the forefront of Africa’s fintech transformation. With MTN MoMo potentially attracting specialised global investment and fostering local innovation, the move could trigger a wave of job creation, digital infrastructure growth, and foreign direct investment into Uganda’s burgeoning tech ecosystem.
Ultimately, MTN Uganda’s separation of MoMo is more than a corporate restructuring—it is a strategic leap toward building a digitally inclusive future. It aligns MTN’s business operations with national economic priorities while ensuring that shareholders, customers, and communities alike reap the benefits of a vibrant, tech-driven economy.
As Mulinge aptly alluded, “When we build with trust, transparency, and purpose, our journey becomes unstoppable.”
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