UTel, the once-flagship telecommunications provider in Uganda, is poised for a significant financial rebound as it secures a vital $225 million investment from Rowad Capital Commercial (RCC) LLC. The culmination of extensive negotiations and engagements earlier this year, including discussions with Ugandan President Yoweri Museveni, marks a pivotal moment for UTel’s revival
Financial Struggles and Resurgence:
Previously beleaguered by financial hardships, UTel succumbed to court-ordered administration in November 2022, leading to the forfeiture of assets and cessation of operations. With the entry of Rowad Capital, a game-changing decision has emerged: a transfer of a substantial 60% stake to the investment firm as part of the $225 million investment package.
Strategy and Objectives:
Based in Dubai, Rowad Capital will kickstart the revitalization process with an initial infusion of $225 million into UTel, aiming to revamp operational foundations and fortify market positioning. The overarching goal is to catalyze a transformative wave in Uganda’s telecom industry, positioning it as an enticing hub for further foreign investments.
Structural Reforms and Market Potential:
In a significant move, UTel has committed to public transparency and investment by offering at least 20% of its shares via the Uganda stock exchange within a two-year window. This strategic alignment with regulatory mandates mirrors practices followed by key industry players like MTN Uganda and Airtel Uganda, fostering a competitive and dynamic telecom ecosystem in Uganda.
Source: Innovation Village