MTN Group has reached a significant milestone in advancing its Ambition 2025 strategy, as shareholders of MTN Uganda have approved the structural separation of MTN Mobile Money (U) Limited.
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.
Build Up: MTN Uganda Moves to Separate Fintech Arm in Strategic Restructuring
Ralph Mupita, President and Chief Executive Officer, MTN Group, said:
This overwhelming 99.9% shareholder approval marks a significant step forward in MTN Uganda’s journey and underscores the Group’s ongoing strategic transformation and platform-driven vision.
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.
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The shareholders’ approval in Uganda at an EGM on Tuesday, 22 July, aligns 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 USD 320 billion.
