FAMReports News Desk | July 21, 2025
In a move that marks a significant shift in the telecom and financial services landscape in Uganda, shareholders of MTN Uganda have voted to separate the company’s mobile money operations from its core telecommunications business. The resolution was passed during an extraordinary general meeting held on Tuesday, signaling a new chapter for one of the country’s leading mobile operators.
The decision comes as part of MTN Group’s broader strategy to establish a dedicated Fintech entity which will consolidate its mobile financial services across Africa. According to MTN Uganda chairman Charles Mbiire, the aim is to unlock the full potential of the mobile money business by creating a separate, specialized platform capable of driving growth and attracting Fintech-focused investors.
“Fintech is different. It needs freedom and flexibility to grow,” Mr Mbiire said during the meeting. “By separating it, we are giving it room to innovate and lead.”
This structural transformation has been in preparation since 2020, and Tuesday’s vote represents a milestone in a multi-year journey to build a more agile and investor-attractive Fintech structure. The shift acknowledges the unique operational and regulatory nature of mobile financial services, which differ greatly from traditional telecom services.
MTN Uganda CEO Sylvia Mulinge described this as the second phase in a three-step journey toward full Fintech independence. The first step occurred in 2021 when MTN Uganda legally separated its mobile money business under the National Payment Systems Act. Now, with shareholder approval, the next phase involves engaging with regulators, merging the businesses into a new entity, and setting up an investor trust.
“This approval allows us to move forward with the next stage: engaging regulators, completing the structural separation, and officially establishing the new Fintech company and investor trust,” Ms Mulinge said.
The newly proposed Fintech company will be primarily owned by MTN Group Fintech Holdings B.V., while the remaining shares will be held in trust for Ugandan investors. The ultimate goal is to list this Fintech entity on the Uganda Securities Exchange (USE) within three to five years, giving more Ugandans an opportunity to participate in the financial services growth story.
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The decision to separate mobile money from the telecom business was not taken lightly. MTN Uganda spent the past week holding town hall meetings with shareholders across the country, outlining the strategic intent and addressing concerns. This consultative approach helped secure overwhelming support for the restructuring.
Mobile money, launched by MTN Uganda in 2009, has grown from a novel concept into a critical component of everyday financial transactions in the country. Over the past 15 years, it has played a major role in financial inclusion, enabling millions of Ugandans to send, receive, and save money without traditional bank accounts.
With this separation, MTN believes it can now position its mobile money business to better compete in the dynamic Fintech ecosystem, expand services, innovate more freely, and comply with ever-evolving financial regulations.
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Following the extraordinary general meeting, MTN Uganda announced that it had received the necessary shareholder endorsement to proceed with the separation. The company said it had been granted authority to finalize the required legal agreements and take all steps needed to execute the move, pending regulatory approvals and tax audits.
Industry analysts see this development as a sign of Uganda’s maturing digital economy. It aligns with a growing trend across Africa, where telecom giants are spinning off mobile money arms into standalone financial services businesses that can attract targeted investment and adapt quickly to changing consumer needs.
As the Fintech space continues to evolve, MTN Uganda’s separation of mobile money from its telecom wing reflects a forward-looking strategy designed to keep pace with innovation and investor expectations. If successful, it could pave the way for similar transformations within other telecom operators across the continent.
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