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Key Points
- MTN Uganda to carve out mobile money business into an independent fintech unit under Bank of Uganda’s regulatory oversight.
- Spin-off positions the fintech arm for a future IPO on the Uganda Securities Exchange, targeting retail and institutional investors.
- With 32 million users and $7.1 billion in transactions, the new firm aims to lead East Africa’s fast-growing digital finance sector.
MTN Uganda, the Kampala-based telecom operator partly owned by Ugandan tycoon Charles Mbire, is carving out its mobile money unit into a standalone fintech firm, in a move aimed at deepening regulatory alignment and unlocking long-term investor value.
The new entity, announced on July 23, 2025, will be regulated by the Bank of Uganda under the National Payments Systems Act, operating independently with its own license. While users will continue accessing services as usual, the spin-off separates MTN Uganda’s telecom operations from its high-growth financial services business, a restructuring that mirrors MTN Group’s playbook in Nigeria and Ghana.
IPO in sight as fintech ambitions grow
MTN Uganda plans to list the fintech unit on the Uganda Securities Exchange within three to five years, offering local investors a direct stake in the country’s $7.1-billion digital financial ecosystem.
“This step unlocks new opportunities in digital finance while enhancing transparency and innovation,” said CEO Sylvia Mulinge, who has led the company since 2022 with a focus on digital transformation and financial inclusion.
With over 32 million registered mobile money users and annual transaction volumes exceeding UGX 27 trillion ($7.53 billion), the new firm is positioned to become a major fintech force in East Africa, providing services that range from basic transfers to savings, loans, and utility payments.
Part of a broader MTN Group restructuring
The move mirrors MTN Group’s fintech spin-offs in Nigeria and Ghana, where subsidiaries like MoMo PSB and MTN Ghana MoMo have emerged as standalone units to boost compliance, enhance focus, and unlock higher valuations.
Fintech is the fastest-growing revenue stream for MTN Group, with $1.3 billion generated in 2024 across 19 markets — reflecting the rising demand for mobile-enabled financial services across the continent.
Mbire’s strategic role: A new chapter in Uganda’s digital economy
Charles Mbire, one of Uganda’s most prominent investors, holds a 4 percent stake (895.5 million shares) in MTN Uganda and remains the largest individual shareholder on the Uganda Securities Exchange.
Since overseeing the company’s landmark 2021 IPO, which raised UGX 535.94 billion ($149.41 million), Mbire has played a central role in aligning the company’s capital market ambitions with Uganda’s broader economic development. The spin-off marks the latest milestone in his stewardship, reinforcing MTN Uganda’s shift toward fintech-driven growth and shareholder value creation.
With 20.7 million telecom subscribers and a rapidly expanding digital payments base, MTN Uganda’s fintech spin-off marks a strategic pivot designed to capitalize on East Africa’s accelerating digital economy. As MTN prepares for an eventual IPO of the standalone unit, the move positions the company — and Uganda — at the forefront of Africa’s fintech revolution.
