When telcos go fintech

MTN Uganda plans to spin out its mobile money business into a fintech, as telcos follow banks by spinning out their payments businesses. “The transaction is part of MTN Group’s strategy to separate its high-growth financial services business from its telecom operations,” says Techcabal.

“The Johannesburg-listed company is betting on fintech as a long-term growth driver, with mobile money already outpacing traditional telecoms revenues in key markets like Uganda.

While it’s unclear whether the new company would seek outside capital or partnerships, the reorganisation will allow the two businesses to pursue their growth in the East African market independently.

Mobile money services have become a critical part of the telecom business in Africa, particularly as smartphone penetration and digital payments uptake continue to grow.

MTN’s move mirrors Airtel Africa’s plan to list its mobile money unit, Airtel Money, in the first half of 2026 as it seeks to capitalise on the growing demand for digital payment services across the continent.”