MTN Ghana is restructuring its mobile money operations to meet regulatory requirements imposed by the Bank of Ghana, which mandate a minimum of 30% Ghanaian ownership for all electronic money issuers.
In a press statement to shareholders, the telecom giant announced it will dissolve its current mobile money subsidiary, MobileMoney Ltd (MML), and transfer all assets, operations, and staff to a newly formed entity named New FinCo.
The restructuring, dubbed the “MML Localisation,” must be completed before the June 13, 2025 deadline to avoid sanctions, including a potential shutdown of its popular MoMo service.
To meet the 30% local ownership threshold, a trust will be established to hold a 32.13% stake in New FinCo on behalf of Ghanaian minority shareholders. The MTN Group will retain the remaining 67.87% of the new entity.
This move marks the second phase of MTN Ghana’s localisation strategy. The first phase, completed in 2024, ensured that parent company Scancom PLC met the local ownership requirement through share trading on the Ghana Stock Exchange.
The second phase, merging MML with New FinCo is subject to approvals from the Bank of Ghana, the courts, creditors, employees, and the Chief Labour Officer.
MTN Ghana describes the restructuring as both a compliance measure and a strategic decision to safeguard the long-term future of its mobile money operations.
The company also indicated that it may list New FinCo on the Ghana Stock Exchange within the next three to five years, offering Ghanaian shareholders the opportunity to invest directly in the new mobile money business.
A General Meeting has been scheduled for May 21, 2025, where shareholders will be briefed on the localisation plans. However, no formal vote will be taken at that session.
