Dubai-based engineering and construction contractor Rowad CapitalCommercial (RCC) is set to acquire a 60% stake of Uganda’s state telecom operator UTel, with an initial investment of USD 225 mn, Bloomberg reports citing permanent secretary at Uganda’s Information Technology Ministry, Aminah Zawedde. The details of the agreement, including whether the initial investment covers the purchase of the majority stake, are still being discussed.

Background: RCC and UTel agreed to form a JV back in December 2023 to boost Uganda’s telecom sector, the Uganda Media Center wrote last year.

UTel is expected to list on Uganda’s exchange: UTel has until January 2026 to list at least 20% of its shares on Uganda’s stock exchange, according to government rules that require telecom operators in the country to list within two years of receiving a national operator license, which it got in January of this year. The timing of the listing will depend on meeting regulatory requirements, according to director of corporate affairs at the Uganda Communications Commission Fred Otunnu.

More on UTel: UTel was established in April 2021 to take over the assets of Uganda Telecom, which had gone into receivership due to debt and mismanagement, according to the company’s website. The government-owned UTel now serves as Uganda’s national provider for fixed-line, mobile, and internet services, with the Finance Ministry holding a 60% stake and the ICT Ministry holding 40%.

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