New FinCo to Replace MML as Regulatory Deadline Approaches
MTN Ghana has announced a major restructuring of its mobile money business in a bid to comply with a key regulatory requirement from the Bank of Ghana. The Payment Systems and Services Act mandates that companies operating as dedicated electronic money issuers must have at least 30 percent Ghanaian ownership.
MobileMoney Ltd (MML), the company’s mobile money subsidiary, currently falls short of this threshold. With a June 13, 2025 deadline looming, MTN Ghana is taking urgent steps to avoid potential sanctions, which could include the suspension of its widely used MoMo service.
In a shareholder circular dated April 30, 2025, MTN Ghana (Scancom PLC) announced plans to dissolve MML and transfer its operations, staff, and assets to a new local entity named New FinCo.
“This restructuring is not only about meeting regulatory obligations but also securing the long-term sustainability of our mobile money business,” the company stated.
To fulfill the ownership requirement, a trust will be created to hold a 32.13% stake in New FinCo on behalf of Ghanaian minority shareholders. This reflects their current interest in Scancom PLC. The remaining 67.87% stake will be retained by the MTN Group.
“We are committed to deepening local participation in our operations and aligning with the Bank of Ghana’s vision for a more inclusive financial ecosystem,” the company added.
The localisation process, referred to internally as the 0“MML Localisation”, is being carried out in two phases. The first phase, which involved increasing Ghanaian ownership at the parent company level through the Ghana Stock Exchange, was completed in 2024.
The second phase includes a legal merger between MML and New FinCo. This process requires approvals from the Bank of Ghana, the courts, creditors, employees, and the Chief Labour Officer.
“The formation of New FinCo allows us to retain the strength of our mobile money platform while ensuring it reflects Ghanaian ownership at the required threshold,” MTN Ghana noted. “Subject to regulatory and stakeholder approvals, we believe this move will pave the way for broader investment opportunities and set the stage for a future listing of New FinCo on the Ghana Stock Exchange.”
The company said it plans to list New FinCo within the next three years, opening new investment opportunities for Ghanaians in one of the country’s fastest-growing financial services platforms.
“This localisation is a strategic realignment that strengthens our commitment to Ghana’s regulatory framework and ensures the continued availability of mobile financial services to millions of Ghanaians.” As Ghana’s largest mobile money provider, MTN’s restructuring move is being closely watched and could serve as a model for other electronic money issuers in the country.
