MTN Uganda has announced its intention to separate its mobile money service MoMo from its telecommunications business, creating an independent fintech company.
Plans for MoMo Spin-off
MTN Uganda plans to spin off its mobile money service MoMo from its telecommunications service structure. This move aims to enhance the company's value proposition in the fast-growing fintech sector.
Details and Shareholder Approval
The proposed spin-off is expected to allow both companies to pursue new ambitions across the East African region. The transaction is subject to regulatory approval and a vote from the company's shareholders. The company's management, led by CEO Sylvia Mulinge, held a strategic meeting with shareholders to discuss the details.
Financial Performance and Growth of MTN Uganda
MTN Uganda continues to show significant growth. In Q1 2025, MoMo's services reached $70.8 million, with an 18.4% increase, totaling over 14 million subscribers. The overall service revenue reached $234 million, growing by 13.5% year-over-year.
The separation of MoMo may represent a significant step in MTN Uganda's strategy to expand its operations and improve services in the financial sector. It also reflects the increasing focus on mobile money and fintech innovations in the region.
