MTN Group Advances Fintech Ambitions with MoMo Separation Approval in Uganda
The separation across MTN operations of the fintech and MoMo businesses from the GSM businesses aims to drive accelerated scale, efficiency and better service delivery to customers.
MTN Group is pleased to announce an important development in the delivery of its Ambition 2025 strategy with the approval by shareholders of MTN Uganda of the structural separation out of MTN Mobile Money (U) Limited.
The strategic intent of Ambition 2025 is ‘leading digital solutions for Africa’s progress. The separation across MTN operations of the fintech and MoMo businesses from the GSM businesses aims to drive accelerated scale, efficiency and better service delivery to customers.
“This approval – at a rate of 99.9% – by MTN Uganda shareholders is an important milestone in the Group’s strategic evolution and delivery of our platform strategy.”
–Ralph Mupita, President and Chief Executive Officer, MTN Group.
MTN Uganda is the first of the listed MTN subsidiaries that have sought and secured approval from their shareholders to structurally separate the fintech business. A similar process will be followed at other listed subsidiaries in due course.
At an extraordinary general meeting (EGM) in Ghana in May, Scancom PLC (MTN Ghana) outlined details of its plans to restructure its MoMo subsidiary in line with national financial regulations as well as the Group’s strategy.
The approval by shareholders in Uganda at an EGM on Tuesday, 22 July, is in line with statutory requirements in that country, which seek to support the growth of digital services. The completion of the transaction remains subject to regulatory approvals and other customary conditions.
In 2024, the MTN Group served more than 63 million active monthly MoMo users in 14 of its 16 markets. They carried out more than 20 billion transactions worth in excess of US$320 billion.
