Kampala, Uganda: In a landmark decision with far-reaching implications for Uganda’s digital economy and Africa’s fintech landscape, shareholders of MTN Group this week voted overwhelmingly to structurally separate MTN Mobile Money (U) Limited from the company’s core telecommunications operations.
The resolution, passed with a 99.9% approval rate during an Extraordinary General Meeting (EGM) held on Tuesday, July 22, positions MTN Uganda as the first listed subsidiary in the Group to receive shareholder endorsement for unbundling its fintech unit.
The move is a central plank in MTN Group’s Ambition 2025 strategy, which aims to consolidate its position as a leading provider of digital solutions on the continent.
According to the Group, separating the mobile money (MoMo) business from traditional GSM services is expected to unlock operational efficiency, improve customer focus, and accelerate growth in Uganda’s fast-evolving financial technology sector.
“This milestone is a key step in our platform evolution strategy. Structural separation gives our fintech operations the autonomy to scale faster, innovate more, and deliver greater value to users,” said Ralph Mupita, President and CEO of MTN Group.
What This Means for Customers
For MTN’s nearly 20 million subscribers in Uganda, the move signals a new era where mobile money services, from peer-to-peer transfers to merchant payments and savings, will operate with the speed, innovation, and customer focus of a dedicated fintech enterprise.
Customers are likely to benefit from; more tailored financial services, independent of telecom infrastructure, faster innovation cycles, as MoMo teams focus solely on digital finance, and stronger compliance and trust, as operations align with Bank of Uganda’s regulatory frameworks for financial institutions.
The move also enables clearer transparency and accountability in how mobile money fees, interest, and services are administered, a long-standing public concern in Uganda.
For Fintech and the Broader Economy
The unbundling is seen as a game-changer in Uganda’s fintech ecosystem, setting the pace for other telecom operators to consider similar structural shifts.
“MTN Uganda’s move will likely trigger a domino effect among major players, reshaping the way digital financial services are structured in East Africa,” noted one Faith, a fintech regulatory analyst at the Financial Sector Deepening Uganda (FSDU).
The landmark decision by MTN also aligns with Uganda’s statutory and regulatory frameworks that emphasize financial inclusion, consumer protection, and the clear delineation between telecom and financial service operations.
Globally, MTN’s fintech ambitions are staggering. In 2024 alone, over 63 million active monthly MoMo users across 14 of MTN’s 16 African markets conducted more than 20 billion transactions, totaling over US$320 billion in transaction value. Uganda has been a core contributor to that growth.
Precedent for Other Markets
MTN Ghana (Scancom PLC) has already set restructuring plans in motion for its MoMo business in line with national regulations. Uganda’s bold move is expected to accelerate similar efforts in Nigeria, Zambia, and other key MTN markets.
However, completion of the separation in Uganda remains subject to final regulatory approvals and fulfillment of customary conditions, including licensing reviews, BoU oversight, and possible structural audits.
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