MTN Ghana is fast-tracking a major restructuring of its mobile money business to meet a critical regulatory deadline set by the Bank of Ghana.
The move comes in response to the Payment Systems and Services Act, which mandates that all dedicated electronic money issuers maintain at least 30% Ghanaian ownership.
Currently, MTN’s mobile money subsidiary, MobileMoney Ltd (MML), does not meet this requirement and faces a June 13, 2025, deadline to comply or risk stiff penalties, including the possible shutdown of its popular MoMo service.
In a circular issued to shareholders on April 30, 2025, MTN Ghana (Scancom PLC) revealed a bold plan: dissolve MML and transfer all assets, operations, and employees to a newly created entity called New FinCo.
To achieve the ownership threshold, a trust will hold 32.13% of New FinCo on behalf of Ghanaian minority shareholders, mirroring their current stake in Scancom PLC. The remaining 67.87% will be retained by MTN Group, ensuring continued control while aligning with local regulations.
MTN is calling the initiative the “MML Localization” project, and it will unfold in two phases. The first phase, achieving the required Ghanaian stake at the parent company level, was completed in 2024 via trades on the Ghana Stock Exchange.
The second and current phase involves a legal merger of MML with New FinCo, subject to approvals from multiple stakeholders, including the Bank of Ghana, the courts, creditors, employees, and the Chief Labour Officer.
While the restructuring responds to regulatory pressure, MTN Ghana is framing it as a strategic shift to reinforce the long-term sustainability of its MoMo business.
Looking ahead, MTN also disclosed intentions to list New FinCo on the Ghana Stock Exchange within three to five years. This move would allow Ghanaian shareholders to directly invest in and trade shares of the new mobile money entity.
An Extraordinary General Meeting has been scheduled for May 21, 2025, where shareholders will receive a full briefing on the localization roadmap. However, no voting decisions will be made during this session.
