MTN Uganda set to launch MoMo as an independent fintech company

MTN Uganda plans to separate its mobile money, MoMo, from its telecoms service structure. The shift, which will make the firm an independent fintech company, aims to enhance its value proposition through its fast-growing payment operation.

The proposed separation will allow both companies to pursue new ambitions across the East African region. According to Data Finance, the transaction is subject to regulatory approval and a vote from the company’s shareholders.

As part of the process, the company’s management, led by MTN Uganda CEO Sylvia Mulinge and MTN MoMo Uganda MD, Richard Yego, today, held a Town Hall strategic meeting with Shareholders to share details on the development.

“Today, we will break it down further and answer shareholder questions as we seek their approval on the #MTNMoMo structural separation,” the company said in an X post. The official announcement and the acquisition details will be shared during the company’s Extraordinary General Meeting in July.

Per the ownership plan, the new entity will be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing minority shareholders of MTN Uganda.

Once the proposed transaction is approved, MTN MoMo Uganda will cease to be a subsidiary of MTN Uganda, while the mobile money and financial technology business currently run by MTN MoMo will be operated by a new company following a company amalgamation.

In addition, MTN Uganda’s listing on the Uganda Securities Exchange will remain unaffected, and the company, one of the exchange’s most active stocks since its 2021 IPO, will continue trading its mobile network business.

MTN MoMo currently enjoys a notable base of over 60 million active subscribers across West and Central Africa. In Uganda, its mobile money services grew 18.4% to $70.8 million (Ush 255.6 billion) with over 14 million subscribers in Q1 2025.

MTN Uganda achieved service revenue growth of 13.5%, reaching $234 million (Ush 841.4 billion). This was driven by strong performance in data and fintech revenue, which grew by 32.5% and 18.4% respectively. Profit after tax increased by 20.6% to $50.4 million (Ush 180.9 billion), with earnings per share reaching $0.0023 (Ush 8.1). 

Also Read: Exclusive: MTN MoMo account users in Ghana share experience with fraudsters.

MTN MoMo Nigeria’s full ownership

While the African telecom giant is moving to diversify its Ugandan mobile money operation, the reverse obtains in Nigeria.

In late 2024, MTN Nigeria acquired MoMo Payment Service Bank (MoMo PSB) to strengthen its position in the financial services sector.

MTN had previously acquired an 80% stake in MoMo PSB, while Acxani Capital owned 20%. Acxani Capital proposed selling their 20% stake in MoMo in May 2024, but their stake was ultimately diluted to 7.17%. MTN acquired the 7.17% for N6.95bn,  

The total cost of the acquisition was N16.35 billion, paid directly to Acxani Capital. An additional N9.4 billion was invested in MoMo afterwards. The transaction also involved the acquisition of assets worth N3.38 billion from Acxani Capital.

Last year, the fintech company’s growth topped the bar, justifying the interest from MTN Nigeria. In February 2024, MoMo announced a multi-market partnership to launch a prepaid virtual card, allowing customers to access more than 100 million acceptance points worldwide.

Mobile money services have become a pivotal part of the telecom operators’ business in Africa, attributed to an increase in smartphone penetration and digital payments adoption.

Perhaps, MTN’s move follows Airtel Africa’s plan to list its mobile money unit, Airtel Money, in the first half of 2026 as it also seeks to bank on the growing demand for digital payment offerings across Africa.