MTN Uganda is moving quickly to separate its mobile money arm, MTN Mobile Money Uganda Limited (MTN MoMo), from its core telecom business.
The move follows Uganda’s National Payment Systems Act 2020 and aligns with MTN Group’s broader fintech strategy.
Why it matters
The spin-off is part of MTN Group’s effort to unlock value in its fintech operations and meet regulatory demands across multiple markets.
Uganda requires mobile money providers to operate as separate legal entities.
What’s next
Shareholders will vote on the proposal at an Extraordinary General Meeting on July 2, 2025. The goal is to finalize the transaction by mid-2025.
Legal context
Uganda’s Payment Systems Act requires telcos issuing electronic money to create standalone entities:
- “A payment service provider… shall establish a subsidiary legal entity…” – Section 48(1)
- “An electronic money issuer shall not… use airtime as electronic money.” – Section 55(2)
Source: Kenyan Wall Street
