The Ugandan government is taking significant steps to revitalize the Uganda Telecommunications Corporation (UTel) after securing a partnership with Rowad Capital Commercial (RCC), a United Arab Emirates-based investment firm.
This partnership is part of the government’s strategy to enhance UTel’s capacity in managing and commercializing the ICT National Backbone Infrastructure (NBI) in Uganda.
Hon. Chris Baryomunsi, the Minister of ICT and National Guidance, announced that RCC will take a 60% shareholding in UTel, while the Ugandan government will retain a 40% share. Of the government’s share, the Ministry of Finance, Planning, and Economic Development will hold 25%, and the Ministry of ICT and National Guidance will hold 15%.
The Minister made the announcement during a presentation of the Ministerial Policy Statement to the Parliament Committee on ICT and National Guidance on Thursday, April 3, 2025. He highlighted that RCC will initially invest US$25 million, with a further commitment of US$200 million over the next three years.
As part of the agreement, the government has decided to transfer the management and commercialization of the NBI from Soliton Telmec to UTel.
This move includes the termination of the contract with Soliton, which will have financial implications due to compensation requirements. The Auditor General has conducted an audit and provided advice on the financial consequences, which the government will cover.
Currently, the NBI is primarily used by government agencies, with limited involvement from the private sector. The government plans to fully commercialize the NBI, opening it up to private sector participation to increase revenue generation.
