President Museveni Issues Three Weeks Ultimatum To ICT Minister To Conclude Agreement Of UTL New Investor RCC

The President of the republic of Uganda H.E Gen Yoweri Kaguta Museveni has directed the minister of information, Communications Technology and National Guidance Dr Chris Baryomunsi to conclude the agreement between Government of Uganda and the Rowad Capital Commercial LLC (RCC) investor who wants to rescue the Uganda Telecommunications Corporation Limited(UTL).

''I am surprised to learn that the investors who want to rescue UTL have not yet got an agreement from the Government. This is amazing. They have now told me that the Government is refusing to give support on two factors: the income and staffing levels of the private company that had been made to rum our National Backbone without any knowledge and the refusal by the Government to assure them of monopoly of telephone and internet services''. The letter reads in part.

The Uganda Telecommunications Corporation Limited (UTCL) and Rowad Capital Commercial LLC (RCC), a company based in Dubai-United Arab Emirates, had signed an agreement for a joint venture in 2022 with President Museveni witnessing the signing ceremony at State House, Entebbe.

UTCL is Uganda’s National Telecommunication operator, birthed from the former Uganda Telecom Limited (UTL). 

Museveni said the multi-US million-dollar joint venture project will not only improve Uganda’s telecommunication sector but will also create employment opportunities for Ugandans and enhance the country’s tax base. 

“The telecommunication sector has grown a lot. Now there are 32 million subscribers. Most of it has been done by MTN which I first welcomed here and the others that came later such as Airtel. They help us to communicate, they also pay taxes and create jobs. But the difference with this one is that it will do all because the government is re-asserting shareholding in this sector,” he said. 

“The company will make profits and will also make dividends. This is the difference between MTN, Airtel and others with this one. They all create jobs at the right time, but this one, because it is a joint venture once they make profits, they give dividends to the government;- which is good. Remember the service sector is an easy sector if you are efficient,” he asserted

.Investment 

Officials said RCC is expected to sink in hundreds of millions of dollars in the government telecommunication company which had collapsed following the ousting of Libyan leader Muammar Gaddafi in 2011.

With Gaddafi toppled and slain by rebels, the state’s enterprises/stakes in countries across Africa were affected.

In Uganda, UTL which was partly owned by the Libyans could not raise the much-needed capital to maintain its operations and upgrade its network.

A Parliamentary investigation showed that UTL was overburdened by debt of about Shs900bn. UTL’s 2G internet services could not compete with rivals in the market such as Airtel and MTN who were providing 4G.

The Libyans had tried to keep the telecom afloat by raising funds for staff salaries but the situation was not sustainable as the partners in the business – government – could not inject in more money or forfeit shares. Government later took over management of the company and sought investors to inject the much-needed cash.

President Yoweri Kaguta Museveni in a group photo with Rowad Capital Commercial LLC (RCC) members , Government of Uganda officials and Uganda Telecommunications Corporation Limited after signing an MOU for a joint business venture at the State House Entebbe
The Minister of ICT and National Guidance, Dr. Chris Baryomunsi together with the Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi signed the agreement on behalf of the government of Uganda. 

Others who appended their signatures on the agreement included the Permanent Secretary of the Ministry of ICT and National Guidance, Dr. Aminah Zawedde and the Permanent Secretary and Secretary to the Treasury of the Ministry of Finance, Planning and Economic Development, Mr. Ramathan Ggoobi. 

The CEO and Managing Director of RCC, Mr. Chaher Al Taki signed the agreement on behalf of his company.

President Museveni urged the investors to bring more investments to Uganda especially in the sectors of value addition.

“The population is growing; it is now 46 million, and in 20 or 27 years, it will be 100 million. So, you are most welcome, and I wish you good luck,” the President told the investors.

Mr. Chaher Al Taki assured the President of a good working relationship with the government of Uganda to ensure that the project becomes a success. 

“We are now real partners and partners work together, they don’t make money from each other they make money together,” he said. 

The signing of the agreement was administered by the Attorney General Hon. Kiryowa Kiwanuka.