MTN Confirms Fintech Spinoff for Nigeria and Uganda — Alipay Joins

June 14, 2026 4 min read

MTN Group confirmed Tuesday it is finalising plans to spin off its fintech operations in Nigeria and Uganda, with Alipay added to the list of potential strategic partners as the South African telecom giant pursues a separate listing for the unit.

Fintech Separation Moves Forward

The Johannesburg-listed operator announced it had selected Nigeria and Uganda as the initial markets for the structural separation of its mobile money and digital payment services. The company declined to specify a target valuation but confirmed it was working toward an independent entity that could attract external investors.

MTN operates in 19 countries across Africa and the Middle East, serving more than 290 million subscribers. Its fintech division processes billions of dollars in transactions annually, making it one of the largest mobile money operators on the continent.

Nigeria Takes the Lead

Nigeria represents the largest single market for MTN's fintech ambitions. The company has operated its MoMo service in the country since 2021 under a partnership with Airtel Africa, competing against native operators including Paga and OPay in a market where less than half the adult population has access to formal banking.

Separating the Nigerian unit allows MTN to bring in partners with local expertise and regulatory relationships. Authorities in Abuja have signalled openness to foreign investment in financial technology, particularly from partners who can accelerate digital inclusion goals.

Alipay's Strategic Entry

Alipay, the payments platform operated by Ant Group, has been incorporated into MTN's partnership discussions for the Nigeria and Uganda operations. The addition signals MTN's intent to leverage Chinese fintech expertise in building scale across African markets. Ant Group's international expansion has faced regulatory headwinds globally, but partnerships with established African operators offer an alternative entry route.

The tie-up would give Alipay access to MTN's existing subscriber base without requiring a standalone licence application in either country.

Uganda's Smaller but Strategic Role

Uganda, where MTN holds a dominant market position with approximately 45 percent of mobile subscribers, serves as a test case for the broader separation strategy. The country's fintech regulatory framework is more developed than many of MTN's other markets, making it a logical candidate for the pilot listing.

Local analysts pointed to Uganda's relatively stable banking regulator as a key factor in its selection. The Bank of Uganda has approved mobile money licences for several operators and maintains a collaborative approach to digital financial innovation.

Investor Implications for South Africans

For South African investors holding MTN shares, the spinoff represents both opportunity and uncertainty. A separate fintech listing could unlock value currently embedded in MTN's consolidated share price, creating a pure-play digital payments vehicle that international funds might favour.

MTN's JSE-listed stock has traded in a narrow range over the past six months, reflecting investor caution about currency risks in key markets like Nigeria, where the naira has weakened sharply against the rand. A successful fintech spin could provide a re-rating catalyst if the new entity lists at a higher multiple than its parent.

The group must still secure approvals from regulators in both Nigeria and Uganda, as well as shareholder sign-off at its annual general meeting. Analysts at three South African brokerages have placed the potential fintech valuation in the range of several billion dollars, though none has issued a formal estimate pending further details.

Regulatory Hurdles Remain

Neither the Nigerian Securities and Exchange Commission nor Uganda's Capital Markets Authority has formally commented on the proposed listing. Central bank approval will also be required, given that the spun entity will hold payments licences in both countries.

Competition authorities in Nigeria have previously scrutinised fintech transactions involving major mobile operators, suggesting the approval timeline could stretch into 2025 or beyond depending on the scope of Alipay's involvement.

MTN stated it expects to provide a fuller update at its half-year results presentation in August. The company confirmed no final decision had been made on whether the Uganda listing would proceed before Nigeria or if both would launch simultaneously.

What Happens Next

Investors should watch for formal announcement of a lead investment bank appointment, expected within weeks. That appointment will signal how far along the spinoff planning has progressed and whether MTN is targeting a listing before year-end or in early 2025.

The composition of the new board and any pre-IPO fundraising round will provide further clues about Alipay's eventual stake and influence. MTN has indicated it intends to retain a controlling interest in the spun entity, meaning minority shareholders in the new company will have limited governance rights.