MTN unbundles MoMo operations in Nigeria, Uganda to unlock new investor capital

MTN Group is accelerating the separation of its mobile money business in Nigeria and Uganda as part of a broader strategy to attract fresh investor capital and unlock the full value of one of Africa’s fastest-growing fintech operations.

The telecom giant is finalising the spin-off of its fintech subsidiaries in both countries, creating standalone entities that can accommodate strategic investors while complying with evolving regulatory requirements. The move marks another major step in MTN’s ambition to transform its Mobile Money (MoMo) platform from a telecom-linked service into an independent financial technology powerhouse.

Industry sources familiar with the development said the restructuring is linked to MTN’s long-term fintech strategy following its landmark commercial partnership with Mastercard in 2023. The deal valued MTN’s fintech business at approximately $5.2 billion and paved the way for potential minority investments in key markets across the continent.

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By separating its fintech operations from its core telecommunications business, MTN is positioning the units for independent growth, easier fundraising and potentially higher market valuations. The company is expected to retain majority control while opening the door to strategic investors who can bring capital, technology expertise and global financial services experience.

In Nigeria, MTN has already undertaken significant internal restructuring. Earlier this year, the group increased its ownership in key local fintech entities as part of preparations for the separation process. The restructuring is expected to strengthen the operational independence of the business and improve its attractiveness to investors seeking exposure to Africa’s rapidly expanding digital payments sector.

A similar process is underway in Uganda, where MTN is reorganising its mobile money business under a separate holding structure. The move follows earlier regulatory approvals and mirrors actions previously taken in Ghana, where MTN has also worked to ring-fence financial services operations from its telecom activities.

The restructuring comes as regulators across Africa increasingly require clearer separation between telecommunications and financial services businesses to reduce systemic risks and strengthen oversight of digital financial ecosystems.

For MTN, however, the exercise is about more than regulatory compliance.

The unbundling could unlock significant shareholder value by allowing investors to assess the fintech operations independently from the telecom business. Mobile money platforms typically command stronger growth multiples than traditional telecom operations because of their higher scalability, transaction-based revenues and expanding role in financial inclusion.

The strategy is being reinforced by MTN’s newly announced partnership with Ant International, the global arm of China’s Alipay ecosystem.

The collaboration will see MTN deploy advanced digital payment technology and launch a super-app experience beginning with Nigeria in the coming months. The upgraded platform is expected to offer enhanced payments, merchant services, mini-apps, digital commerce tools and stronger fraud protection capabilities.

The partnership is expected to strengthen MoMo’s position in an increasingly competitive African fintech market, where operators are racing to capture growing demand for digital payments, remittances and financial services among millions of unbanked and underbanked consumers.

Africa remains one of the world’s largest mobile money markets, and MTN continues to record strong growth in active wallets, transaction volumes and merchant adoption across its footprint.

By combining structural independence with new technology partnerships, MTN is effectively preparing its fintech business for a new phase of expansion.

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The strategy could also create opportunities for global investors seeking exposure to Africa’s digital economy. Market observers believe strategic partners such as Mastercard and other financial institutions could eventually acquire minority stakes in the newly separated businesses, providing MTN with additional capital to fund innovation and regional expansion.

While challenges such as regulatory approvals, cybersecurity risks and currency volatility remain, MTN’s extensive customer base, distribution network and brand presence provide significant advantages as it scales its fintech ambitions.

The latest restructuring underscores a broader shift taking place across Africa’s telecommunications industry, where operators are increasingly separating high-growth fintech assets from traditional connectivity businesses to attract investment and accelerate growth.

For MTN, the unbundling of its Nigerian and Ugandan MoMo operations is not merely a corporate restructuring exercise. It represents a strategic bet that Africa’s future growth will be driven as much by digital financial services as by telecommunications, positioning the company at the centre of the continent’s rapidly evolving fintech ecosystem.