Uganda Telecommunications Corporation Limited (UTel), the erstwhile national telecom provider of Uganda, is on the cusp of a significant financial resurgence with the infusion of a substantial $225 million investment from Rowad Capital Commercial (RCC) LLC. This considerable capital injection is the culmination of thorough discussions and negotiations that took place earlier this year with the President of Uganda, Yoweri Museveni.
Previously, UTel encountered severe financial difficulties, which precipitated its descent into a court-ordered administration in November 2022. This unfortunate turn of events necessitated the surrender of all its assets and cessation of business operations.
In a strategic move to secure this much-needed investment, UTel has consented to transfer a majority stake of 60% to Rowad Capital. The investment firm, headquartered in Dubai, is set to channel the initial tranche of $225 million into the telecom sector with the objective of rejuvenating UTel’s operational infrastructure and bolstering its position in the market.
The overarching goal of this investment is to catalyze a transformation within Uganda’s telecommunications sector, making it an attractive destination for additional foreign investments. The government of Uganda envisions this partnership as a stepping stone towards fostering a vibrant, competitive telecom environment that is in harmony with the nation’s regulatory policies.
In adherence to the regulatory stipulations of Uganda, UTel is mandated to offer at least 20% of its shares to the public through the Uganda stock exchange within a two-year timeframe. This directive is aimed at promoting transparency and enabling public investment, a standard that has been set and followed by other prominent telecom entities in the country, such as MTN Uganda and Airtel Uganda.
