UAE’s Rowad Capital Bets $225M on Uganda’s Telecom Transformation

Editorial Team

Last updated 9-04-2025

2 min

Rowad Capital Commercial plans to acquire a 60% stake in Uganda Telecommunications Corporation.

An initial investment of US$25 million will be followed by US$200 million over three years.

The Ugandan government will maintain a 40% share, split between two ministries.

Early contract termination with Soliton Telmec incurred controversy, sparking unanswered questions.

There’s optimism about revitalising Uganda’s ICT sector, despite past challenges for UTel.

There's some significant movement brewing in Uganda's telecoms landscape, folks. UAE-based investor Rowad Capital Commercial, or RCC, is set to acquire a substantial 60% stake in Uganda Telecommunications Corporation (UTel). This deal isn't just about snapping up another telecoms firm—it's got a much bigger aim.

They're planning to pour in an initial investment of US$25 million and that won't be the end of it, mind you. Over the next three years, they're committing an impressive US$200 million more, specifically aiming to help UTel capitalise on managing and commercialising Uganda's National Backbone Infrastructure (NBI), the country's crucial ICT network spanning nationwide.

The Ugandan government isn't stepping away entirely; they'll hold onto a 40% share. To be precise, the Ministry of Finance will keep a 25% stake, while the Ministry of ICT retains the remaining 15%. It does look like the state wants to keep skin in the game and ensure UTel continues serving the broader national intrest.

Now, this development hasn't come without raising a few eyebrows. Most notably, the early ending of the existing management contract with Soliton Telmec—a firm previously running the NBI on behalf of the National Information Technology Authority (NITA-U)—has stirred some controversy. Questions around the quick exit are still unanswered.

There's no shortage of optimism and ambition behind this partnership, but there's also a realisation that turning around UTel is no walk in the park. Let's not forget, the company has had its difficulties, including a troubling spell under court-appointed administration. Exactly how RCC and the government plan to tackle these challenges remains unclear.

Still, proponents argue there's plenty of potential in this move. Ultimately, Uganda hopes to pump fresh blood through its ICT veins, transforming the backbone infrastructure into a much-needed revenue earner—a win-win scenario benefiting the public and private sectors alike.

As ever, we'll be keeping an eye on how this unfolds. As the saying goes, the proof of the pudding is in the eating, so let's see if this highly anticipated investment delivers tangible results. Stay tuned, Arageek readers!

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