UTL | ASSETS | BUSINESSES | SOLD

The administration of the defunct Uganda Telecom Limited (UTL) has handed over UTLC assets and businesses to the new Government telecom company, Uganda Telecommunications Corporation Limited (UTCL). 

In 2007, LAP GreenN acquired 69% of UTL shares, with the government holding the remaining 31%. 

However, the government has since acquired full ownership of the company, rebranding it to UTCL. 

 Speaking during the handover ceremony at Telephone House in Kampala on Friday, UTL administrator Ruth Sebatindira said that on February 23, 2022, the UTL administration executed an asset sale and purchase agreement with UTCL at a consideration of sh256.8b. 

Evelyn Anite State Minister of Finance for Investment interacting with Ruth Sebatindira the Administrator Uganda Telecom Limited during the handover.

“These sums are to be applied towards some liabilities, namely the trade development bank loan, pension, and administration debts. The last payment under the assets purchase agreement is expected by June 2023,” she said. 

Sebatindira said UTL’s debt is estimated at sh1trillion, with the company’s assets valued at sh250b. 

The company has an average gross revenue of sh3b per month, an average operating expense of sh4.5b per month, an average monthly deficit of sh1.5b, and 317 sites /masts countrywide out of 472 which are non-profitable, reflecting 67%. 

Termination of staff 

The company has 230 staff employees whose employment services have been terminated. However, the staff members have all been re-hired under the new company (UTCL) for six months, subject to extension depending on their performance. 

(L-R) Edward Sengonzi under Secretary Finance Ministry looking on as Evelyn Anite State Minister of Finance for Investment receiving UTL documents from Ruth Sebatindira the Administrator.

 “Effective November 30, 2022, all employees shall cease to be employees of Uganda Telecom in administration. They will all be employed by UTCL on fresh terms effective December 1, 2022,” said Sebatindira. 

Assets 

In her handover report, Sebatindira listed some of the UTL assets handed over to the Government, including land and buildings as well as the network infrastructure. 

Sebatindira was appointed as the administrator of UTL in January 2020.

She said the current administration’s contracts had been extended by the court for only eight months with effect from November 2, 2022, for residue matters and receiving amounts that remain unpaid under the sale of assets and purchase agreement. 

She said the revenues generated by the defunct UTL could no longer support continued trading under administration.

'Let this thing die

Receiving UTL assets and businesses, Evelyn Anita, the Minister of State for Privatization and Investment, remembered the tough times she went through during the collapse of UTL. 

3. Evelyn Anite State Minister of Finance for Investment addressing participants during the handover of Uganda Telecom Limited assets to Uganda Telecommunications Corporation Ltd (UTCL) at their offices in Kampala on November 18, 2022.

Anite revealed how President Yoweri Museveni called her, asking her as the minister for privatization and investment to save UTL amid growing pessimism. 

“I didn’t know where to start. Here I was faced with the resignations of directors, and the President gave me clear instructions: 'Save UTL'. So, I started reorganizing our house, and the majority of the people in government believed there was no way to save UTL, they went ahead and said, 'Anite, let this thing die,” she said.

New chapter

Voicing optimism, the minister urged Ugandans to embrace UTCL, which is the only government-owned telecommunications company in Uganda.

“Things are going to turn around. The old has gone and the new has come," she said.

4. Ruth Sebatindira the Administrator Uganda Telecom Limited addressing participants during the handover of Uganda Telecom Limited assets to Uganda Telecommunications Corporation Ltd (UTCL) at their offices in Kampala on November 18, 2022.

Dr. Grace Ssekakubo, the board chair of UTCL, said the company is set to turn around the telecommunications sector in Uganda with lots of services lined up for Ugandans using UTCL. 

He said they will leverage the broadband market, and mobile money services, among other offers. 

According to Ssekakubo, in the coming months, UTCL will work on various initiatives, such as investing in the latest technology like 5G+ and implementing a digital ecosystem. 

The company plans to launch a mobile money platform that will trade as UG-SENTE, for mobile money services. 

“Very shortly, Ugandans can expect a super launch of the new national telecommunications service provider," said Ssekakubo. 

The UTCL board has put in place a management team of eight people to drive the dreams of Uganda’s telecom company. 

Margaret Lutwama Mukiibi, the chief operations officer, Martin Nahamya, the head of business operations, and Marvin Kagoro, the manager of branding and corporate communication are part of this team.