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The recent announcement of a UAE-based investor, Rowad Capital Commercial (RCC), acquiring a 60% stake in Uganda's national telecom entity, Uganda Telecommunications Corporation (UTel), has sparked a series of questions regarding the potential impacts and strategic direction of this partnership. 

Under the new agreement, Rowad Capital will hold a 60% share in UTel, while the Ugandan government will retain a 40% share — specifically, the Ministry of Finance, Planning and Economic Development will hold 25%, and the Ministry of ICT will hold 15%. The partnership is set to initiate with an initial investment of $25 million, followed by an anticipated $200 million infusion over the next three years. The primary objective appears to be capitalizing UTel to enhance the management and commercialization of Uganda’s ICT National Backbone Infrastructure (NBI).

A significant aspect of this transition involves the termination of the existing contract with Soliton Telmec, a network planning and design firm contracted by the National Information Technology Authority – Uganda (NITA-U) to oversee the NBI. The government's intent is to accelerate UTel's recapitalization without delaying the process, which suggests that Soliton Telmec will be compensated to conclude its involvement approximately three years ahead of schedule.

With UTel assuming control of the NBI, the government aims not only to provide services to public agencies but also to attract private sector clients, thereby hoping to enhance revenue generation for the organization.

A new UTel Board has been appointed, comprising representatives from both the government and RCC. This board will formalize the establishment of a bank account for the initial investment, marking the beginning of this partnership. African Wireless Communications

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