Mobile operator MTN Uganda accelerates plans for the separation of its mobile money service, aiming for completion before a scheduled vote in July.
In a significant move aligning with its broader fintech strategy, MTN Uganda has announced the structural separation of its mobile money arm, MTN Mobile Money Uganda Limited (MTN MoMo), from its core telecom business. The decision was made during an Extraordinary General Meeting (EGM) held on July 22, 2025 [1].
The separation is part of MTN Group's "Ambition 2025" strategy, aimed at unlocking greater investor interest in fintech and enabling MTN MoMo to operate as a standalone entity focused on mobile money and financial technology [1][2].
According to Uganda's Payment Systems Act, a payment service provider must establish a subsidiary legal entity [3]. This requirement is met as the spin-off moves forward. The aim is to finalize the transaction by mid-2025 [4].
The spin-off is also in compliance with Uganda's National Payment Systems Act 2020, which mandates mobile money providers to operate as separate legal entities [6]. This is to promote financial stability, competition, and consumer protection.
Under the same Act, an electronic money issuer is prohibited from using airtime as electronic money [5]. This restriction will be upheld following the separation.
The separation of MTN MoMo from the core telecom business is intended to meet regulatory demands across multiple markets [7]. The sources for this information are from Kenyan Wall Street [8].
Future plans include listing MTN MoMo on the Uganda Securities Exchange within the next three to five years, allowing public investment and increased transparency [1][2]. This move is expected to culminate in a public listing of MTN MoMo by around 2028–2030 under regulatory and market conditions that support compliance with the Uganda National Payment Systems Act 2020 [1][2].
In summary, the spin-off process started officially with shareholder approval in July 2025 and is expected to culminate in a public listing of MTN MoMo by around 2028–2030 under regulatory and market conditions that support compliance with the Uganda National Payment Systems Act 2020 [1][2]. This reflects a broader trend in Uganda and Africa to treat mobile money platforms as independent fintech firms distinct from telecommunications operators.
- The structural separation of MTN Mobile Money Uganda Limited (MTN MoMo) from its core telecom business is following MTN Group's "Ambition 2025" strategy, with a focus on finance, business, and technology.
- In compliance with Uganda's National Payment Systems Act 2020, the spin-off of MTN MoMo aims to promote financial stability, competition, and consumer protection by operating as a standalone entity specialized in mobile money and financial technology.
