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MTN Group shareholders have approved the structural separation of MTN Mobile Money (U) Limited from the core telecommunications business.
The decision passed with an overwhelming 99.9% approval rate at an Extraordinary General Meeting (EGM) on Tuesday, July 22.
It marks MTN Uganda as the first among MTN's listed subsidiaries to secure such shareholder consent for the unbundling of its fintech operations.
The strategic intent behind this move, encapsulated in Ambition 2025's vision of 'leading digital solutions for Africa’s progress,' is to foster accelerated growth, enhance operational efficiency, and ultimately deliver superior service to customers within both the mobile money (MoMo) and traditional GSM segments.
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Driving Accelerated Scale and Service Delivery
Ralph Mupita, MTN Group President and Chief Executive Officer, hailed the approval as a crucial milestone in the Group’s strategic evolution and the delivery of its overarching platform strategy.
The structural separation, he said, aims to allow the fintech and MoMo businesses to operate with greater agility and focus, enabling them to scale rapidly in the burgeoning digital financial services market.
MTN Uganda
This move is also consistent with Uganda's statutory requirements, which are designed to support the expansion of digital services across the nation. While MTN Uganda leads this charge, a similar process is anticipated for other listed MTN subsidiaries in due course.
For instance, Scancom PLC (MTN Ghana) had already outlined its plans to restructure its MoMo subsidiary in May, aligning with national financial regulations and the Group's broader strategy. The completion of this transaction in Uganda remains contingent upon securing necessary regulatory approvals and other customary conditions.
MoMo's Growing Impact Across Africa
In 2024 alone, the MTN Group served over 63 million active monthly MoMo users across 14 of its 16 markets.
These users collectively performed more than 20 billion transactions, facilitating a staggering total value exceeding US$320 billion.
By structurally separating the MoMo business, MTN aims to unlock further value, enhance its competitive edge in the digital payments landscape, and reinforce its commitment to driving Africa's digital progress.