Telecommunications company MTN Uganda plans to split off its financial technology division, aiming for a standalone listing on the stock exchange within 3-5 years.
MTN Uganda's fintech division, MTN Mobile Money (MTN MoMo), is set to pursue a public listing on the Uganda Securities Exchange (USE) within the next three to five years. This announcement follows the recent independence and structural separation of MTN MoMo from MTN Uganda Limited.
The move aligns with MTN Group's broader strategy to unlock value from its digital financial services across Africa. The new fintech firm will operate under the supervision of the Bank of Uganda and aims for a future initial public offering (IPO) on the USE.
MTN Uganda has already received shareholder approval for the structural separation of its fintech arm as part of its Ambition 2025 strategy. The timeline for the listing of the new fintech entity on the USE is within a three- to five-year period, which implies a window roughly from 2025/2026 through 2028/2030 for the listing to materialize.
Sylvia Mulinge, CEO of MTN Uganda, has stated that the goal is to see the independent fintech business list separately on the Uganda Securities Exchange. The new company will be majority-owned by MTN Group Fintech Holdings B.V, the fintech investment arm of parent company MTN Group based in South Africa.
Mobile money has become a backbone of financial inclusion across the continent. Services, which allow users to transfer funds and make payments via mobile phones, have surged in popularity across Africa and are used for various purposes, including utility bills and transport fares.
The primary competition for the new fintech entity will still be the local unit of Bharti Airtel, owned by India's Bharti Enterprises. MTN Uganda, the largest telecom operator in Uganda, still has approximately 21 million mobile subscribers.
The new fintech entity will focus on providing services in the mobile money and fintech sector. As mobile money becomes increasingly important, MTN has been steadily positioning its fintech operations as a core growth driver beyond voice and data.
This timeline allows for regulatory approvals, operational scaling, and capital market preparation. The listing of the new entity on the USE is expected to happen within the next three to five years, marking a significant step in the growth of the fintech sector in Uganda.
The new fintech firm, majority-owned by MTN Group Fintech Holdings B.V, aims for a future initial public offering (IPO) on the Uganda Securities Exchange (USE), aligning with MTN Group's broader strategy to unlock value from digital financial services across Africa. As the goal is for the independent fintech business to list separately, this move might potentially open avenues for investing in the growing mobile money and fintech sector in Uganda.
