MTN Uganda shareholders approve seperation of Mobile Money unit from MTN Group

MTN Uganda has received shareholder support to separate MTN Mobile Money (MoMo) from the rest of the group’s business in that country, the first of an intended similar process in other MTN subsidiaries.

MTN Group said in a statement on Thursday that this development aligned with its Ambition 2025 strategy of “leading digital solutions for Africa’s progress.” MTN Uganda is the first of the listed MTN subsidiary to structurally separate the fintech business. A similar process will be followed at other listed subsidiaries in due course, the group said.

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 $320 billion.

“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,” said MTN Group President and CEO Ralph Mupita.

“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,” he said.

At an extraordinary general meeting (EGM) in Ghana in May, Scancom (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 July 22 was in line with statutory requirements in that country, which seek to support the growth of digital services. 

MTN Group's share price was up 1.78% to R142.83 on the JSE Thursday afternoon, bringing the price a whopping 84.9% higher than what it traded at a year ago.

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