Published on 17/04/2025
By David Balinda
Uganda’s $225 million plan to revamp its national telecommunications infrastructure is facing major setbacks, with key government obligations reportedly unfulfilled, raising doubts over the future of the initiative.
The deal, signed in December 2023 between Uganda Telecommunications Corporation Limited (UTCL), Dubai-based Rowad Capital Commercial LLC, and various government ministries, was intended to usher in a new era of digital connectivity. However, the project has since stalled, dogged by bureaucratic inertia, contract breaches, and internal government contradictions that threaten to derail the entire venture.
At the center of the dispute is the Government Support Agreement, which designated UTCL as the primary provider of government payment services. But stakeholders were stunned when the National Information Technology Authority (NITA-U) signed a separate contract with Alpha X to provide a similar digital payment platform.
“This isn’t just about one contract,” a senior UTCL official said on condition of anonymity. “When different arms of government work at cross-purposes like this, it undermines investor confidence and the entire rationale behind the UTCL revival.”
The agreement also outlined the transfer of the National Backbone Infrastructure and E-Government Infrastructure from NITA-U to UTCL. With the current management contract held by Soliton set to expire on May 12, 2025, insiders say the verification and handover process is dangerously behind schedule.
“The verification window is now impossibly tight,” a source close to the negotiations said. “We were supposed to have a proper audit before transfer to establish the true state of these assets. That hasn’t happened.”
Concerns over governance have also emerged. UTCL, incorporated in 2021, has yet to publish audited financial statements. Tensions escalated when the company’s board was suddenly suspended by the Company Secretary, reportedly under instruction from government shareholders.
Rowad Capital, which committed $25 million in working capital and $200 million for infrastructure upgrades, has expressed growing frustration. “We’re ready to meet our obligations,” a Rowad representative said, “but only when the agreed conditions are met.”
With the country’s digital transformation agenda hanging in the balance, analysts are calling for urgent action, including an independent audit of NBI and EGI assets, resolution of land title issues hindering infrastructure rollout, reactivation of UTCL’s board, and improved coordination between government agencies.
“This isn’t just about fixing a telecom company. It’s about whether Uganda can deliver on its vision of a digital future. Right now, that vision is fading fast,” said one industry expert.
The Ministry of ICT and the Ministry of Finance had not responded to requests for comment by the time of publication.
