Uganda: MTN to split mobile money from its core business
It means MTN Mobile Money Uganda Ltd is set for a change to a new brand – MTN New FinCo, if regulators approve the decision. The separation is aimed at giving the fintech arm the autonomy to thrive in a fast-evolving market.'You may ask why split MoMo (MTN Mobile Money) from our core telecom business?' Sylvia Mulinge, the CEO of MTN Uganda, asked.'Because fintech is a different beast. It moves fast. It needs focus, flexibility and freedom to grow. By giving MoMo its structure, we're giving it the space it needs to scale, innovate and lead,' she explained, adding that the move unlocks value for shareholders, sharpens strategic focus and aligns with international best practice.'It's a critical part of our Ambition 2025 to lead digital solutions for Africa's progress,' she said.
The adjustment follows a report that indicated MTN Uganda's mobile money unit was a significant growth engine for the firm. The unit closed the year with USh1.63 trillion ($45 million) in assets, outpacing competitor Airtel Uganda's USh1.01 trillion ($28 million). MTN also leads in customer mobile money balances, holding USh1.37 trillion ($38 million), nearly twice its closest competitor.
Despite the strong performance, mobile money revenue still lags behind traditional voice services, underscoring the need for renewed strategic focus and investment.
MTN plans to position the newly created MTN New FinCo for future equity injections, with a goal of listing the standalone fintech business on the Uganda Securities Exchange in three to five years.
Read: MTN Group nets $30 million from sale of 1.5bn shares in Ugandan subsidiaryCharles Mbire, Chairperson of MTN Uganda's Board, hailed the shareholder support: 'We are grateful to our shareholders for their confidence and backing this step. This transaction is designed to unlock value for our shareholders while future-proofing the fintech business.'Ownership of MTN New FinCo will be held 76.015 per cent by MTN Group Fintech Holdings B.
V, with the remaining placed in a trust for MTN Uganda shareholders. In the interim, a shareholder trust will be created to manage shares for the more than 20,000 retail investors.
Uganda's mobile money market remains highly competitive, driven by mobile wallet penetration and digital adoption. MTN and Airtel continue to expand their reach, including rural rollouts like Airtel's May 2025 expansion of 4G network to Kazo District, aimed at boosting digital inclusion.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
6 minutes ago
- Zawya
BENEFIT partners with General Assembly to empower national tech talent
BENEFIT, the Kingdom's innovator and leading company in Fintech and electronic financial transactions service, has signed a Memorandum of Understanding (MoU) with General Assembly Bahrain, marking a strategic partnership to support the development of national talent and empower their capabilities within the tech sector. The signing ceremony took place at the Bahrain Institute of Banking and Finance (BIBF). The MoU outlines BENEFIT's access to the General Assembly's pool of trained professionals for recruitment purposes. With the ability to share job openings to facilitate candidate matching. The agreement further encompasses the implementation of specialized training programs, including a range of upskilling and reskilling options such as Career development, accelerators, part-time courses, and bootcamps in tech disciplines. Furthermore, the agreement includes cooperation in organizing joint events and meetings, participation in career fairs, and opportunities for representatives from both organizations to contribute as guest speakers at relevant events. It also highlights plans for UX Design Capstone Collaborations, as well as joint efforts in the areas of marketing. Commenting on the occasion, Reyadh Almearaj, Chief Information Officer -BENEFIT stated: 'We are pleased to formalize this partnership with General Assembly, as it supports our commitment to developing human capital, which is essential to institutional growth and excellence. This collaboration aims to strengthen the link between training and employment in the tech sector, and we were keen to pursue this cooperation to equip our technical teams with advanced skills and expertise.' Mr. Almearaj further added: 'This collaboration allows us to leverage General Assembly's well-established training programs and technical expertise, while creating meaningful job opportunities and practical learning experiences within a modern, innovation-driven environment. We remain firmly committed to nurturing national talent and look forward to introducing further initiatives that support skills development in one of the most vital sectors shaping the future.' Ms. Ahlam Oun, Director of General Assembly, stated: 'We are proud to sign this MoU with a distinguished institution like BENEFIT. This partnership represents a tangible model for aligning training with employment by providing trainees with the opportunity to apply their skills in a real-world professional environment. It also paves the way for joint efforts to enhance the technical capabilities of BENEFIT's workforce, ensuring they remain equipped with the latest knowledge and tools required to support the company's digital transformation and sustained growth.' Aisha Buhiji Administrator, PR & Corporate Communication ayshab@ The Benefit Company B.S.C (C) P.O Box 2546, Seef District, Kingdom of Bahrain
Zawya
33 minutes ago
- Zawya
UBA Chairman Tony O. Elumelu calls for African governments to prioritize infrastructure & private sector investment
DUBAI, UAE – Tony O. Elumelu, Group Chair of United Bank for Africa (UBA), Heirs Holdings, and Founder of the Tony Elumelu Foundation has challenged African leaders to take decisive action in building a resilient continent while highlighting significant investment opportunities for Global partners including the Gulf in Africa's transformation journey. Delivering the keynote address on "Resilient Infrastructure, Human Capital, and Green Assets" at the 2025 World Bank and IMF African Caucus Meeting of 54 African member countries in Bangui, Central African Republic, Elumelu tasked African leaders with strengthening their continent's foundations while creating pathways for meaningful international partnership. Building Resilient Foundations "Africa's development is our responsibility. No one else will do it for us. Africa's future is in our hands," Elumelu declared, challenging African leaders to strengthen fiscal capacity, drive efficiency, and create enabling environments for international partnerships. The UBA Chairman emphasized that reliable electricity is crucial for Africa's industrial revolution, noting that "no industrial revolution or meaningful progress can occur on the continent without reliable electricity." Youthful Demographics Create Market Potential Elumelu highlighted Africa's demographic advantage as a key opportunity for global investors, noting that over 60% of the continent's population is under 35 years old. "Africa is the youngest continent on earth. Our young people are the answer to the world's demographic crisis, our minerals power the extraordinary technological changes we are experiencing, and our fields can feed the world," he explained. This demographic profile creates substantial market opportunities for global partners in sectors including telecommunications, education technology, financial services, and consumer goods, particularly as the continent builds resilient economic foundations. Framework for Stronger Partnerships Elumelu emphasized that successful partnerships must be built on "genuine partnerships of equality and mutual respect," ensuring African development occurs "on African terms" that benefits African people and catalyzes true value creation across the continent. His message comes as Dubai's trade with Africa is forecast to grow 10% annually over the next five years. This trajectory, combined with his call for resilient infrastructure development, creates compelling opportunities for global partners. UBA's DIFC branch strengthens UAE-Africa financial flows, facilitating trade and investment between the regions. With Africa's GDP expected to reach $2.6 trillion by 2030, strategic infrastructure investments from international partners could unlock significant economic value while supporting sustainable development across the continent. About UBA Group United Bank for Africa Plc (UBA) is a leading pan-African financial institution with operations in 20 African countries and international presence in the USA, UK, France, and UAE. As Africa's Global Bank, UBA connects businesses and investors worldwide to opportunities across the continent. Visit for more information.
Zawya
19 hours ago
- Zawya
Furthering Implementation of the Peace Agreement Between the Democratic Republic of the Congo and the Republic of Rwanda
In support of implementation of the Peace Agreement Between the Democratic Republic of the Congo (DRC) and the Republic of Rwanda (Rwanda) signed in Washington, D.C. on June 27, 2025, the United States hosted two sets of meetings on July 30 through August 1, 2025, focused on implementation of the security aspects of the agreement and building a framework for regional economic growth opportunities, which together are critical to achieving long-term stability and durable peace in the Great Lakes region. This bilateral initiative is designed to unlock the immense economic potential of the Great Lakes region made possible only through the implementation of the Peace Agreement. On August 1, representatives from the DRC and Rwanda, facilitated by the United States, initialed the text of the Regional Economic Integration Framework Tenets, a requirement outlined in the Peace Agreement. Through joint coordination in areas including energy, infrastructure, mining, national park management and tourism, and public health, the DRC and Rwanda will drive economic progress and improve the lives of people and the communities where they live across the Great Lakes region. Also on July 31, DRC and Rwandan delegations held the first meeting of the Joint Oversight Committee to support implementation of the Peace Agreement Between the DRC and Rwanda, observed by the United States, the State of Qatar, the Republic of Togo (as the African Union facilitator) and the African Union Commission. The Committee serves as a platform for implementing the Peace Agreement and resolving disputes. At its first meeting, participants appointed Chairpersons to the Commission, agreed to governing terms, and prepared for the launch of the Joint Security Coordination Mechanism. This week's meetings represent a significant step forward in implementing the Peace Agreement, with the DRC and Rwanda taking meaningful actions to advance security and economic cooperation. The United States reaffirms its commitment to supporting these efforts and, as the parties make progress implementing the Peace Agreement, looks forward to hosting the Summit of the Heads of State in Washington, D.C., to drive peace, stability, and economic prosperity. Distributed by APO Group on behalf of Department of State, United States of America.
