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In a strategic move poised to transform Uganda’s digital infrastructure, UAE-based investment firm Rowad Capital Commercial LLC (RCC) has signed a deal to acquire a 60% stake in Uganda Telecommunications Corporation Limited (UTel). This partnership, announced through an official government statement, signals a renewed effort to position UTel as a central player in Uganda’s digital transformation by granting it control over the country’s National Backbone Infrastructure (NBI)—the core of Uganda’s internet framework.
Under the terms of the agreement, RCC will invest an initial $25 million, with a commitment to inject up to $200 million over three years. The Ugandan government will retain a 40% share in UTel, equally split between the Ministry of Finance and the Ministry of ICT and National Guidance. The investment aims to revitalize UTel, enabling it to competently manage, monetize, and expand the NBI, which is crucial for enhancing connectivity and advancing the country’s digital economy.
However, the deal has sparked debate among lawmakers. Members of Parliament have raised concerns about the government’s decision to terminate its existing contract with Soliton Telmec, the current NBI operator with three years left on a 15-year agreement. Critics argue that waiting out the contract could save costs. In response, ICT Minister Chris Baryomunsi emphasized the urgency of attracting immediate capital and upgrading digital infrastructure. He confirmed that the government will pay compensation to Soliton—an expense already evaluated by the Auditor General to ensure regulatory transparency and fiscal accountability.
The government’s plan is clear: by transferring NBI management to UTel, the network can transition from being a tool primarily used by public institutions to a revenue-generating asset accessible to private sector stakeholders. This aligns with broader goals of enhancing digital governance, reducing internet costs, and ensuring system interoperability across ministries through compliance automation and technology-driven public service delivery.
A new board of directors has already been appointed to oversee UTel’s transition and operations. Additionally, a dedicated financial account has been set up to manage incoming funds—underscoring efforts toward stronger governance, risk, and compliance (GRC) measures.
Looking forward, the Ministry of ICT is requesting over UGX 205 billion (approximately $56.3 million) in the 2025/2026 budget to support its transformation agenda. The funds will be used to settle existing liabilities and accelerate critical projects including digital automation, cybersecurity enforcement, and regulatory technology integration.
If executed effectively, this public-private partnership could serve as a model for regulatory risk management and infrastructure modernization across the continent. It marks a significant step in Uganda’s ambition to unlock the full potential of its digital economy through strategic investment, regulatory intelligence, and technology-enabled governance.
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