KAMPALA, Uganda — MTN Uganda shareholders have approved a strategic move to separate its mobile money operations from the core telecommunications business, with plans to list the new fintech entity on the Uganda Securities Exchange within three to five years. This decision, reached during an extraordinary general meeting, marks a significant step toward creating an independent financial technology company.
The separation aims to transition MTN’s mobile money services into a dedicated fintech company, provisionally named FinCo, which will consolidate the group’s mobile money businesses across Africa. MTN leadership believes this new structure will enhance growth, improve operational efficiency, and make the business more attractive to specialized investors in the financial services sector.
MTN Chairman Charles Mbiiire emphasized the rationale behind the split, stating Tuesday, “Fintech is different. It needs freedom and flexibility to grow. By separating it, we are giving it room to innovate and lead.”
The approval followed extensive engagement with shareholders across the country through town hall meetings, where the plan was detailed and questions addressed, ultimately securing broad support.
With the official go-ahead, MTN will now proceed with structurally separating its mobile money unit. The mobile money service, initially launched in 2009, underwent its first legal separation in Uganda in 2021 under the National Payment Systems Act. This current step advances its evolution into an independent financial entity.
Ms. Sylvia Mulinge, MTN’s chief executive officer, confirmed that the listing on the Uganda Securities Exchange is the final phase of a three-step journey. The new company will be majority-owned by MTN Group Fintech Holdings B.V., with the remaining shares held in trust for Ugandan investors.
