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MTN Ghana is dissolving its mobile money subsidiary, MobileMoney Ltd (MML), and transferring operations to a new Ghanaian-owned entity to meet Bank of Ghana regulatory demands — a move that could determine the survival of the company’s widely used MoMo platform.
Under the Payment Systems and Services Act, all dedicated electronic money issuers in Ghana must have a minimum of 30% Ghanaian ownership. MML currently does not meet this threshold and has until June 13, 2025, to comply or face potential regulatory sanctions, including possible closure of its operations.
In a circular to shareholders dated April 30, MTN Ghana (Scancom PLC) announced that it will restructure MML through a merger with a newly incorporated entity named New FinCo, which will assume all assets, staff, and operational control of the mobile money business.
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To meet the local ownership requirement, a trust will be created to hold 32.13% of New FinCo on behalf of Ghanaian shareholders, reflecting their existing stake in Scancom PLC. The remaining 67.87% will be retained by the MTN Group.
The restructuring is being carried out in two phases. The first phase — meeting the 30% Ghanaian ownership at the parent level — was completed in 2024 via trades on the Ghana Stock Exchange. The second and current phase involves the legal merger between MML and New FinCo, which requires approval from the Bank of Ghana, courts, creditors, employees, and the Chief Labour Officer.
MTN is portraying the reorganisation, dubbed the “MML Localisation”, as a forward-looking realignment that not only ensures regulatory compliance but also strengthens its long-term presence in Ghana’s fintech space.
The company has also indicated plans to list New FinCo on the Ghana Stock Exchange within the next three to five years, giving minority shareholders the opportunity to invest directly in the new entity.
An Extraordinary General Meeting (EGM) has been scheduled for May 21, 2025, to brief shareholders on the localisation strategy. However, no formal vote will be taken at that meeting.
Read the full statement here:PR-161-SCANCOM-PLC-CIRCULAR-TO-SHAREHOLDERS2
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