Uganda government has unveiled a bold new strategy to revitalise its national telecom company, Uganda Telecommunications Corporation Ltd (UTel), through a partnership with Rowad Capital Commercial LLC (RCC), a UAE-based investment firm. According to a recent government statement, the goal is to transform UTel into a leading telecom player by giving it full control of the country’s National Backbone Infrastructure (NBI)—Uganda’s core internet network.
$200m deal gives UTel control of Uganda’s internet backbone
As part of the agreement, RCC will inject an initial $25 million, with a commitment to scale that up to $200 million over the next three years. In exchange, RCC will take a 60 percent ownership stake in UTel. The remaining 40 percent will be retained by the Ugandan government, split between the Ministries of Finance and ICT.
This significant investment is expected to give UTel the financial and operational boost needed to become a key player in Uganda’s digital space. By managing the NBI directly, UTel is poised to improve service delivery, expand network access, and enhance connectivity across public and private sectors.
However, the move has drawn questions from some members of parliament. Currently, the NBI is managed by Soliton Telmec, which is under a 15-year contract with only three years left. Critics argue that terminating the contract early could result in unnecessary costs.
Government justifies fast-track takeover
ICT Minister Chris Baryomunsi defended the decision, stating that delaying the transition would stall critical investments needed to jumpstart UTel’s growth. The government plans to compensate Soliton Telmec for the early contract termination—a cost that has already been evaluated by the Auditor General, according to the minister.
The move is part of a broader effort to open the NBI to private sector clients, generate new revenue streams, and help Uganda transition further into a digitally integrated economy. A new board has already been appointed to oversee UTel’s operations, and a dedicated bank account will manage the inflow and allocation of investment funds.
Eyes on 2025: funding boost sought for ICT reforms
Looking ahead, the Ministry of ICT is requesting USh205bn (about $56.3 million) for the 2025/2026 financial year. These funds will go toward settling existing debts and advancing digital transformation efforts. Priorities include reducing internet costs, automating public services, and enhancing the interoperability of government ICT systems.
The partnership with RCC is seen as a potential game-changer—not only for UTel, but for Uganda’s broader ambitions in the digital era. By modernising its infrastructure and inviting foreign investment, Uganda is signalling its intent to position itself as a digital leader in the region.
Whether this bold step will pay off remains to be seen, but one thing is clear: Uganda is betting big on a tech-forward future. (Africabriefing)
