MTN Ghana races to localise MoMo arm ahead of regulatory deadline

MTN Ghana is restructuring its mobile money business. This change is to meet a key requirement from the Bank of Ghana.

According to the Payment Systems and Services Act, electronic money issuers must have at least 30% Ghanaian ownership. Currently, MTN’s mobile money subsidiary, MobileMoney Ltd (MML), does not meet this requirement. They have until June 13, 2025, to comply or face severe penalties.

On April 30, 2025, MTN Ghana (Scancom PLC) informed shareholders about the changes. They plan to dissolve MML and transfer its assets and staff to a new local entity called New FinCo. A trust will hold a 32.13% stake in New FinCo for Ghanaian minority shareholders.

The remaining 67.87% will be owned by the MTN Group. This reorganization is known as “MML Localisation” and will occur in two phases. The first phase was completed in 2024 when Scancom PLC achieved the required Ghanaian ownership through trades on the Ghana Stock Exchange.

The second phase involves merging MML with New FinCo. This merger requires approvals from several parties, including the Bank of Ghana and other stakeholders.

MTN Ghana views this move as both necessary for compliance and strategic for its MoMo business's future. They also plan to list New FinCo on the Ghana Stock Exchange within three to five years.

This listing would allow minority shareholders to trade directly in the new entity. Shareholders are invited to an Extraordinary General Meeting on May 21, 2025, for more information about this structure; however, no vote will take place at that time.