Uganda UTel secures $225 million investmet from Dubai-based investor RCC
UTel is set to receive a $225 million investment fund from Rowad Capital Commercial LLC.
Uganda Telecommunications Corporation Limited (UTel) is set to receive a $225 million investment fund from global engineering and construction contractor, Rowad Capital Commercial (RCC) LLC.
The investment was preceded by extensive meetings and negotiations between RCC officials and Uganda's president Yoweri Museveni earlier this year.
Established as Uganda's national telecom provider on April 8, 2021, UTel relinquished all its assets and business operations in November 2022 due to financial struggles that had led to its placement under court-appointed administration.
The Ministry of Finance and the Ministry of Information and Communications Technology currently jointly hold ownership of UTel.
The state-run telco has agreed to cede 60% of its shares to the Dubai-based Rowad and expects Rowad to invest an initial $225 million in the sector.
The investment aims to boost UTel's operational capabilities and enhance its market competitive advantage in Uganda's telecom sector. The broader strategy seeks to revamp the industry, inviting foreign investment that aligns with the country's regulatory mainstay.
Uganda regulations require UTel to list at least 20% of its shares on the Uganda stock exchange within 2 years to ensure transparency and public participation which big players like MTN Uganda and Airtel Uganda have already done.
