Uganda to Cede 60% in State-Owned Telecom Operator UTel to Rowad

Uganda expects Rowad Capital Commercial LLC to invest an initial $225 million in its state-run telecommunications operator and take up a majority stake once ongoing talks are concluded.

Dubai-based RCC will acquire 60% shareholding in Uganda Telecommunication Corp., or UTel, according to Aminah Zawedde, permanent secretary in the information communication technology ministry. She didn’t comment on whether the investment includes a purchase price for the stake.

Negotiations started early this year after officials from RCC met Uganda’s President Yoweri Museveni in October. UTel is owned by the finance and ICT ministries and took over the assets of Uganda Telecom Ltd. in November 2022, which had been under receivership.

Uganda requires telecommunication providers operating in the nation to list on its stock exchange. Bigger operators MTN Uganda Ltd. and Airtel Uganda Ltd. have already offered some shares on the bourse.

UTel, which was issued a national telecommunications operator license in January, has two years within which to list at least 20% of its shares, according to Fred Otunnu, director of corporate affairs at Uganda Communications Commission. That timeframe will, however, depend on the company’s fulfilment of listing requirements, he said.

Source:norvanreports.com