MTN Uganda is advancing plans to structurally separate its mobile money platform, MTN MoMo, from its core telecommunications operations in line with the country’s evolving regulatory landscape. This move comes in direct response to Uganda’s National Payment Systems Act of 2020, which mandates the creation of distinct legal entities for mobile money services—a shift aimed at tightening oversight and ensuring transparency in the digital financial services space.
The legislation, particularly Sections 48 and 55, makes it clear that mobile money operators who are not financial institutions must establish separate subsidiaries to issue electronic money. Furthermore, it prohibits telecom providers from treating airtime as a form of currency or using it in financial transactions. These provisions are pushing operators like MTN Uganda to draw clear lines between their telecom and fintech operations.
Beyond regulatory compliance, this restructuring aligns with the broader strategy of MTN Group, known as “Ambition 2025.” The Johannesburg-listed multinational is reshaping its presence in African markets by spinning off its fast-growing financial technology arms into standalone entities. This approach has already been implemented in Ghana, where MTN launched “New FinCo” in May 2025, and in Nigeria with the establishment of MoMo PSB under a Payment Service Bank license.
In Uganda, the plan will see MTN Mobile Money Uganda become a separate company under the ownership of MTN Group Fintech Holdings B.V., along with a trust designed to represent MTN Uganda’s minority shareholders. This new structure is expected to enable both the mobile money and telecom arms of the business to pursue independent growth strategies across East Africa, free from operational overlap.
MTN MoMo already plays a significant role in Uganda’s financial landscape, boasting approximately 14 million active users. Its financial performance continues to underscore the strategic value of the service, with first-quarter revenues in 2025 rising 18.4 percent to $70.8 million (Ush 255.6 billion). In several regions, mobile money has even begun to outpace traditional telecom services as a revenue driver.
To formalize the separation, MTN Uganda will seek shareholder approval during an Extraordinary General Meeting (EGM) scheduled for July 2, 2025. The meeting will be conducted in a hybrid format, allowing both in-person and virtual participation. If approved, MTN MoMo will no longer function as a direct subsidiary of MTN Uganda, though the restructuring will not affect MTN Uganda’s listing on the Uganda Securities Exchange, where it has been publicly traded since its IPO in 2021.
The entire process remains subject to final regulatory and shareholder approvals. However, it marks a significant step in MTN’s ongoing transformation into a diversified digital services company across the African continent.
