A UAE-based investor, Rowad Capital Commercial (RCC), is set to acquire a 60% stake in Uganda’s national telecom company, Uganda Telecommunications Corporation (UTel). This strategic partnership aims to capitalize UTel, enabling it to manage and commercialize the ICT National Backbone Infrastructure (NBI) in Uganda.
Under the new arrangement, Rowad Capital will invest an initial US$25 million, with an additional US$200 million planned over the next three years. The Ugandan government will retain a 40% share, with the Ministry of Finance holding 25% and the Ministry of ICT taking 15%.
The move raises questions, particularly regarding the early termination of a contract with Soliton Telmec, which was managing the NBI on behalf of the National Information Technology Authority (NITA-U). Despite this, the government aims to transform the NBI into a revenue-generating tool for both public and private sectors, hoping to boost revenue significantly.
While the plans for revitalizing UTel are ambitious, the government is yet to clarify how the company will be turned around, especially considering the challenges UTel has faced, including its previous court-appointed administration. The future success of this partnership remains uncertain, but it represents a bold step toward modernizing Uganda’s telecom infrastructure.
