MTN shareholders approve MoMo separation

KAMPALA - MTN Uganda shareholders on Tuesday overwhelmingly approved the structural separation of MTN MoMo, its mobile money business, into a standalone fintech company.

The important decision was made during the Extraordinary General Meeting held at MTN headquarters in Kampala, where shareholders voted over 99% in favor of the proposal.

MTN officials said that they will now move forward with the next step of obtaining necessary approvals from various regulators, including the Bank of Uganda, Uganda Securities Exchange (USE), Capital Markets Authority, and the tax authorities.

Charles Mbire, Mtn Board Chairman

If approved by all regulators, MoMo will become an independent fintech operation, mainly owned by MTN Group Fintech Holdings BV, with local investors holding their shares in trust.

“The proposed structural separation of MTN and MoMo is a major strategic move for MTN. It clearly shows that we are evolving into a modern tech company aligned with global trends,” Charles Mbire, MTN board chairman, said.

A shareholder’s financial interest in MTN MoMo will be managed through a trust. The trust will receive dividends from MTN MoMo, which will then be passed on to minority shareholders.

Sylvia Mulinge, The Mtn Ceo

The company also confirmed its strong commitment to list MoMo on the USE within the next 3 to 5 years.

“This is not just a technical milestone but also a key sign of a shift, a new chapter that is beginning in our business as we continue working to expand digital and financial inclusion in Uganda faster and further," Sylvia Mulinge, the MTN CEO, said.