MTN Ghana Splits MoMo from Telecom in Bold Fintech Move

MTN Ghana to Separate Mobile Money Operations from Telecom Business in Strategic Fintech Shift

MTN Ghana has announced plans to split its mobile money division, MobileMoney Limited (MML), from its main telecom operations in a calculated move that complies with legal requirements. The Payment Systems and Services Act of 2019, which requires electronic money issuers doing business in Ghana to have at least 30% local ownership, is what this historic reorganization attempts to adhere to. A new company called New FinCo would be established to house the MobileMoney business, per a May 2, 2025, shareholder circular released by Scancom PLC, the parent company of MTN Ghana. Within the following three to five years, this organization is anticipated to become a wholly Ghanaian business and list on the Ghana Stock Exchange (GSE).

MML is a fully owned subsidiary of Scancom PLC, which went public in 2024 and attained 30% Ghanaian ownership. All of MML’s personnel, assets, and obligations will be moved to New FinCo under the new arrangement. Minority shareholders will have 32.13% of New FinCo’s shares temporarily held on their behalf under a special trust structure, guaranteeing their financial interest while adhering to regional ownership regulations. Shareholders will receive direct stock in the new business after it is listed on the GSE. The business stressed that Scancom PLC, MTN Group, and New FinCo will all bear an equal share of the associated costs and that the entire transformation will be tax-neutral. This action represents a critical turning point in MTN Ghana’s development from a conventional telecom provider to a prominent fintech company.

The Accra International Conference Centre will host an Extraordinary General Meeting (EGM) on May 21, 2025, to inform shareholders of the specifics of the restructuring. The meeting will provide crucial information on the business realignment and the prospects of MTN’s fintech operations in Ghana going forward, even though no votes will be needed.

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Source: GRAPHIC ONLINE