Kampala, Uganda, March 2nd 2017: Yesterday, The Honourable Minister of Finance Matia Kasaija announced the decision of The Government of Uganda to take over the operations of UTL with immediate effect following notification received from the majority shareholder UCOM stating that they will no longer avail funding to the company.
For over a year, the two shareholders UCOM and The Government of Uganda have been in discussions to agree on turnaround plan for Uganda Telecom. These discussions were at a very advanced stage and a draft shareholder agreement providing for a turnaround strategy was pending approval by Government.
While the notification received from UCOM is unfortunate, it opens up a new opportunity to accelerate the UTL’s turnaround strategy.
Fortunately, during the course of 2016, Uganda Telecom as a business has made great headway and improved its business performance by 53%, the best position the company has enjoyed in many years. For this, I would like to commend the management and staff for the great sacrifices made and also applaud them on their commitment and hard work.
To the staff of UTL, our valued customers, business partners and the General Public; I would like to reassure you all that it is business as usual and there is no reason for undue concern, as UTL has the full support of the Government.
I want to thank the President, Minister of Finance, the Attorney General, the Minister of Investment and Senior Government Officials for their determined support, speedy and affirmative decisions that reassures us of Government’s commitment to see UTL operate as a viable business entity and a market leader in Uganda.
Mr. Stephen Kaboyo
Chairman of the Board
Uganda Telecom Limited