MTN Uganda shareholders have approved the structural separation of MTN MoMo, the company’s mobile money division, in a major move that will allow it to become a stand-alone fintech company.
This strategic decision, ratified on July 22, 2025, at an Extraordinary General Meeting (EGM), positions MTN MoMo for a potential $14 billion listing on the Uganda Securities Exchange (USE) within the next three to five years.
The Big Move: What’s Happening with MTN MoMo?
A Strategic Spin-Off
MTN Uganda, a subsidiary of the MTN Group, has decided to spin off its mobile money business into a new entity, MTN New FinCo.
This restructuring, approved by shareholders, will see MTN Group Fintech Holdings B.V. owning 76% of the new company, with a trust holding the remaining 24% for existing MTN Uganda shareholders.
The move aligns with MTN Group’s broader strategy to separate its high-growth fintech operations from its core telecom business, unlocking significant value and fostering innovation.
Why Now?
The decision comes at a time when mobile money is outpacing traditional telecom revenues in key African markets.
In Q1 2025, MTN MoMo Uganda reported an 18.4% year-on-year revenue increase, generating $70.8 million with over 14 million active users.
With transactions totalling $25 billion in 2024, MTN MoMo dominates Uganda’s digital payments market. By creating a standalone entity, MTN aims to capitalise on the growing demand for digital financial services and attract fintech-focused investors.
READ ALSO:MTN Invests $1.2 Million in Empowering Ugandan Youth for a Digital Future
The Road to a $14B Listing
The planned listing of MTN New FinCo on the USE within three to five years is a game-changer. This move mirrors strategies by competitors like Airtel Africa, which plans to list its Airtel Money unit in 2026.
A potential $14 billion valuation positions MTN MoMo as one of Africa’s flagship fintech stocks, promising increased retail investor engagement and long-term value creation.
Why This Matters: The Bigger Picture
Empowering Financial Inclusion
MTN MoMo has evolved from a telecom subsidiary to a fintech powerhouse, serving over 60 million active users across 17 African countries.
By offering services like payments, e-commerce, lending, insurance, and remittances, MoMo is driving financial inclusion in regions where traditional banking struggles.
Hermann Tischendorf, Chief Information & Technology Officer at MTN MoMo, emphasises, “Our services are the equaliser, allowing individuals in frontier markets to participate in trade, store value, and improve their quality of life.”
Strategic Benefits of the Spin-Off
- Valuation Uplift: As a standalone fintech, MoMo can command higher market multiples than MTN’s telecom business, reflecting its high-growth potential.
- Operational Autonomy: The new entity will have its own tech stack, partnerships, and customer acquisition strategies, enabling faster innovation.
- Regulatory Compliance: The separation aligns with Uganda’s National Payment Systems Act 2020, which mandates clear boundaries between telecom and financial services.
- Investor Appeal: A standalone MoMo can attract venture capital, private equity, and ESG-focused investors, fuelling further expansion.
What Sets MTN MoMo Apart?
Innovation Rooted in Objectivity
Unlike Silicon Valley’s trend-driven tech scene, MTN MoMo focuses on realistic innovation tailored to Africa’s unique challenges.
From navigating power outages to addressing connectivity limitations, MoMo’s solutions are built for resilience.
Its Open API platform, launched in Uganda in 2018 and now active in 12 countries, allows third-party developers to create new financial use cases, accelerating customer growth and transaction volumes.
Strategic Partnerships
MTN MoMo’s partnership with Mastercard, announced in 2024, is a prime example of its forward-thinking approach.
The collaboration introduces prepaid virtual cards for MoMo customers, enabling access to over 100 million global acceptance points.
This partnership enhances cross-border remittances and merchant payment solutions, positioning MoMo as a global player in digital finance.
Proven Performance
With 69.1 million active users and $221.3 billion in transaction value in 2022, MTN MoMo leads Africa’s mobile money market.
Its ambitious goal to reach 100 million users and $750 billion in transaction value by 2025 underscores its growth trajectory.
READ ALSO:How Investors Can Position for MTN Uganda’s Fintech Play
A Fintech Powerhouse in the Making
MTN MoMo’s transformation into a standalone fintech entity marks a defining moment in Africa’s digital finance landscape.
With shareholder approval secured, a $14 billion valuation in sight, and a commitment to financial inclusion, MTN MoMo is redefining what’s possible in frontier markets.
As it navigates regulatory approvals and prepares for a potential IPO, MoMo is not just building financial infrastructure; it’s empowering millions to engage with the global economy.
Stay tuned for updates on MTN MoMo’s journey to becoming Africa’s leading fintech platform!
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
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