MTN Uganda, the country’s largest telecom operator, has received shareholder approval to carve out its mobile money and fintech division into a standalone business — with plans to list the new entity on the Uganda Securities Exchange (USE) within the next three to five years.
Why it matters
The move reflects the growing scale and importance of fintech services in Africa, particularly mobile money — a sector that has become a backbone of financial inclusion across the continent.
Driving the news
- At an extraordinary general meeting on Tuesday, shareholders greenlit the separation of the fintech unit from MTN Uganda’s core telecom business.
- The new company will be majority-owned by MTN Group Fintech Holdings B.V, the fintech investment arm of parent company MTN Group (based in South Africa).
By the numbers
- MTN Uganda boasts around 21 million mobile subscribers.
- It primarily competes with the local unit of Bharti Airtel, owned by India’s Bharti Enterprises.
What they’re saying
“The goal is to ultimately see the independent fintech business list separately on the Uganda Securities Exchange… within a three- to five-year period,” said Sylvia Mulinge, CEO of MTN Uganda.
Zoom out
Mobile money services, which allow users to transfer funds and make payments via mobile phones, have surged in popularity across Africa — used for everything from utility bills to transport fares.
MTN has been steadily positioning its fintech operations as a core growth driver beyond voice and data.
What’s next
The newly formed fintech entity will begin operations as a separate company, aligning with MTN Group’s broader strategy to unlock value from its digital financial services across Africa.
Source: Reuters
