MTN Uganda Plans to Spin Off Its Financial Technology Division, Aiming for Independent Stock Exchange Listing in a Timeframe of 3-5 Years
MTN Uganda to List Fintech Division on Uganda Securities Exchange
MTN Uganda, the leading telecom operator in Uganda, is planning to list its standalone fintech division on the Uganda Securities Exchange (USE) within the next 3-5 years. This move is aimed at accelerating growth, improving efficiency, and attracting investors who specialize in financial services.
The separation of the mobile money business into an independent fintech company, named FinCo, is intended to give this unit the freedom and flexibility to innovate and lead in the fintech space, distinct from MTN’s core telecommunications operations. This strategy is part of a broader one by MTN Group to consolidate its mobile money businesses across Africa into a larger fintech entity under FinCo.
The primary competition for FinCo is expected to be the local unit of Bharti Airtel, owned by India's Bharti Enterprises. However, the new entity will be majority-owned by MTN Group Fintech Holdings B.V, the fintech investment arm of parent company MTN Group based in South Africa.
Sylvia Mulinge, CEO of MTN Uganda, stated that the goal is to list the independent fintech business separately on the Uganda Securities Exchange within a three- to five-year period. The listing on the stock exchange will also enable MTN Group to offer shares to Ugandan investors, with most shares held by MTN Group Fintech Holdings B.V. and a portion held in trust for local investors, thereby increasing local participation and investment in the fintech sector.
Mobile money services, which allow users to transfer funds and make payments via mobile phones, continue to surge in popularity across Africa. They have become a backbone of financial inclusion across the continent, used for various purposes including utility bills and transport fares. The new fintech entity is expected to focus on expanding and improving its mobile money and fintech services.
The move reflects the growing scale and importance of fintech services in Africa, particularly mobile money. The listing of the new entity on the USE within the next three to five years could potentially provide new investment opportunities for local and international investors.
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FinCo, the independent fintech company being established by MTN Uganda, is aiming to attract investors who specialize in financial services to support its growth and efficiency in the fintech sector. The listing of FinCo on the Uganda Securities Exchange (USE) within a three- to five-year period will enable local and international investors to purchase shares, increasing investment in the fintech sector.
