MTN Uganda Limited has secured shareholder approval for the structural separation of its mobile money and fintech business, MTN Mobile Money (U) Limited (MTN MoMo)—a significant step in the company’s long-term strategic roadmap.
The resolution, which was passed during a hybrid Extraordinary General Meeting (EGM) held earlier today, received overwhelming shareholder support, paving the way for the amalgamation of MTN MoMo into a new entity.
Subject to regulatory approvals, this new company will be majority-owned by MTN Group Fintech Holdings B.V., with the remaining shares held through a trust structure to continue benefiting MTN Uganda’s institutional and retail minority shareholders.
Charles Mbire, Chairman of the Board of MTN Uganda, hailed the vote of confidence from shareholders, stating: “We are grateful to our shareholders for their confidence and backing of this strategic step. This transaction aligns with global market trends and is designed to unlock value for our shareholders while future-proofing the fintech business. The Board is confident that this decision is in the long-term interest of all stakeholders.”
Echoing the significance of the milestone, Sylvia Mulinge, Chief Executive Officer of MTN Uganda, noted: “Today’s shareholder approval marks a significant milestone in our journey to accelerate financial and digital inclusion in Uganda. The structural separation of our fintech operations enables us to drive sharper operational focus, enhance agility, and unlock greater efficiency to deliver superior shareholder value and transform lives through digital innovation.”
Richard Yego, CEO of MTN MoMo Uganda Ltd, emphasized the alignment with MTN Group’s broader strategy: “As part of our Ambition 2025, building the largest digital platforms was one of the pillars. The structural separation is part of the journey of building the largest Fintech platform in Africa. As MTN MoMo, we have done quite a lot, and we are happy that the shareholders have given this approval. Once the separation is complete, we shall be able to serve our customers better.”
This move is part of MTN Uganda’s alignment with MTN Group’s Ambition 2025 strategy, which focuses on delivering leading digital solutions for Africa’s progress. It also reinforces MTN Uganda’s commitment to advancing Uganda’s digital transformation agenda.
The transaction is still subject to regulatory approvals and other customary conditions. MTN Uganda has committed to working closely with the relevant authorities to secure the necessary consents and ensure a seamless transition.
