Financial conglomerate MTN Group moves forward in its financial technology (fintech) aspirations following approval to separate its mobile money service, MoMo, in Uganda.

Financial conglomerate MTN Group moves forward in its financial technology (fintech) aspirations following approval to separate its mobile money service, MoMo, in Uganda.

In a strategic move towards leading digital solutions for Africa's progress, the MTN Group has announced the approval of the structural separation of its fintech and Mobile Money (MoMo) businesses from the GSM telecommunications businesses in several of its subsidiaries. This separation forms part of the MTN Group's Ambition 2025 strategy, aiming to enable these fintech operations to operate with greater agility and focus, thereby driving accelerated scale, enhanced efficiency, and improved customer service in the growing digital financial services market across Africa.

Recently, MTN Uganda secured 99.9% shareholder approval for structurally separating MTN Mobile Money (U) Limited from its telecom business. This marks the first listed MTN subsidiary to do so, with the process subject to regulatory and customary approvals. Similarly, MTN Ghana's subsidiary Scancom PLC announced plans to restructure its MoMo unit in line with national financial regulations and the Group's broader strategy.

The separation involves the fintech and MoMo businesses being separated from the GSM businesses, a move that aligns with regulatory requirements in various countries to support the expansion of digital financial services. This strategic pivot reflects MTN’s commitment to adapting to the evolving digital landscape and positioning itself at the forefront of Africa's digital progress.

Ralph Mupita, President and Chief Executive Officer of MTN Group, considers this approval as an important milestone in the Group's strategic evolution and delivery of its platform strategy. He emphasised that this separation will allow the fintech and MoMo businesses to grow rapidly, separate from the core GSM infrastructure.

In 2024, the MTN Group served over 63 million active monthly MoMo users in 14 of its 16 markets, carrying out over 20 billion transactions worth in excess of US$320 billion. The Group's strategic intent is to leverage this strong foundation to further expand its digital footprint and enhance its offerings in the digital financial services sector.

The process is underway across multiple MTN subsidiaries, beginning with MTN Uganda and Ghana, and will continue in other listed subsidiaries over time. This move is a key step in delivering Ambition 2025’s vision of “leading digital solutions for Africa’s progress” by making the fintech and MoMo businesses more nimble and capable of rapid growth separate from the core GSM infrastructure.

In summary, the strategic intent of the MTN Group is to achieve greater agility, accelerated scale, efficiency, and improved customer service in the fintech and MoMo businesses. Regulatory alignment is crucial to this process, with approval processes subject to regulatory and customary conditions. The ongoing status is that the process is underway across multiple MTN subsidiaries, with initial milestones achieved and rollout to other markets ongoing.

1. The strategic separation of MTN Group's fintech and Mobile Money (MoMo) businesses from its GSM telecommunications businesses marks a significant step towards enhancing agility and growth in the fintech industry.
2. The regulatory alignment for this separation is vital, as it enables the fintech and MoMo businesses to adapt to the evolving digital landscape and foster rapid growth, separate from the core GSM infrastructure.
3. The growing digital financial services market across Africa will benefit from the MTN Group's expanded digital footprint and improved customer service in the fintech and MoMo businesses, thanks to the ongoing strategic separation of these businesses from its GSM telecommunications operations.

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