13 November 2024

The Ugandan government has signed a memorandum of understanding (MoU) with Rowad Capital Commercial LLC (RCC), which allows RCC to acquire 60% of the shares in the state-owned Uganda Telecommunications Corporation Limited (UTCL), while the government retains 40%.

“We have entered into an agreement as a government and our new partner Rowad will work with us to manage UTCL. As you know, UTCL has faced enormous challenges and we have been looking for a partner that we will work with and that can inject financial resources to revive the company so that it is a strong and viable business,” said Minister of ICT and National Orientation Chris Baryomunsi.

The partnership is part of the government’s efforts to revitalize UTCL since the latter acquired incumbent operator Uganda Telecom Limited (UTL) in November 2022 for 356.8 billion Ugandan shillings. UTL was majority-owned by Libyan group LAP Green with a 69% stake, while Uganda held only 31%.

LRCC’s investment in the capital is expected to enable UTCL to benefit from significant investments in financial resources and technical expertise, which are crucial to modernising its digital infrastructure.