MTN Uganda is accelerating the separation of its mobile money business, MTN Mobile Money Uganda Limited (MTN MoMo), as part of its compliance with the National Payment Systems Act 2020 and to align with MTN Group’s regional fintech strategy.
- •According to a cautionary announcement released on 11 June 2025, MTN Uganda plans to seek shareholder approval at an Extraordinary General Meeting (EGM) scheduled for 02 July 2025.
- •The proposal aims to spin off MTN MoMo from the telecom business, ensuring the new entity meets regulatory and operational requirements.
- •MTN Group is currently in different stages of creating standalone fintech entities in Uganda, Ghana, and Nigeria.
Why the Separation is Required
Uganda’s National Payment Systems Act 2020 mandates that mobile money operators establish a separate legal entity. The Act explicitly states:
“A payment service provider, other than an entity solely established to issue electronic money, a financial institution or microfinance deposit taking institution, that intends to issue electronic money shall establish a subsidiary legal entity for that purpose.”
(Section 48(1))
This requirement ensures that mobile money operations are run independently from telecommunications services.
In addition, the Act bars telecom operators from using airtime as a substitute for money. As noted in Section 55(2):
“An electronic money issuer shall not— (a) count or issue airtime as electronic money; or (b) use airtime for permissible transactions.”
This reinforces the need for clear separation between mobile money and telecom operations.
MTN Group’s Ambition 2025
The restructuring also aligns with MTN Group’s Ambition 2025 strategy which aims to unlock value, attract new investors, and strengthen regulatory compliance by creating standalone fintech entities in Uganda, Ghana, and Nigeria.
- •Ghana: MTN’s Scancom PLC launched “New FinCo” in May 2025, with about 32% of shares in trust to meet local ownership rules. The company plans to list on the Ghana Stock Exchange within 3–5 years.
- •Nigeria: MTN Nigeria launched MoMo PSB under a Payment Service Bank license. It gained over 4.2 million wallets and grew fintech revenue by 28% year-on-year. Regulatory complexities have delayed a full separation.
- •Uganda: MTN Uganda’s board approved the separation plan in March 2025, aiming to complete the transaction by mid-2025.
MTN Group’s Q1 2025 results show strong growth in fintech services. Ghana saw a 39.5% rise in fintech revenue, while Nigeria’s fintech revenue grew by 40%. The planned separation in Uganda aligns with these trends and strengthens MTN’s position in Africa’s digital financial services market.
