Telecom giants drive Africell out of Uganda

Sep 07, 2021

In a communication written to its employees, Africell announced that it will wind up its operations in Uganda effective October 7 2021.

Africell Uganda will wind up its operations in Uganda effective October 7 2021. (Courtesy photo)

Cecilia Okoth
Journalist @New Vision

Africell Uganda has folded its operations in Uganda, citing fierce competition in the telecom sector. 

In a communication written to its employees, Africell announced that it will wind up its operations in Uganda effective October 7 2021.

This they said is premised on a detailed assessment that was conducted over the past several months, on the future of the telecom company in Uganda. 

“Africell strives to be a leader not only in terms of mobile services but also in terms of community impact and the digitally-led transformation of society. In Uganda, a country with a mature and competitive telecoms sector, we believe that the opportunity to achieve this impact is increasingly limited. We have therefore taken the difficult decision to permanently end Africell UG’s operations in Uganda,” management stated. 

They further explained that the decision to wind up was made in the long-term interests of the Ugandan telecoms sector. 

Aware that their decision will render employees jobless, the telecom company pledged to not only treat them with respect but also offer them support to find new professional opportunities.

 “In addition to a full salary, and benefits during your notice period, Africell will offer you severance pay, payment of unused annual leave allowance, repatriation pay (where applicable) and training and support from a dedicated on-site professional,” management told its employees.

 Africell also pledged to support its current customers switch to other operators.

Africell launched its commercial operations in Uganda in November 2014, having completed the acquisition of Orange Uganda earlier in the year.

In 2014, the network subscribers in Uganda were estimated at one million. As of September 2018, its subscriber customer numbers had risen to 2.1 million. 

In April 2020, the company's website gave the number of subscribers over 3,000,000. 

With the exit of Africell, Uganda now has a few telecom companies including; MTN, Airtel, Uganda Telecom, Roke Telecom, Smile telecom, Lycamobile, K2 telecom, among others.

Comments

No Comment


(adsbygoogle = window.adsbygoogle || []).push({});