The global engineering and construction contractor’s investment follows extensive discussions and negotiations with Ugandan President Yoweri Museveni earlier this year.

UTel, once Uganda’s national telecom provider, faced financial challenges that led to its placement under a court-appointed administration in November 2022.

As a result, the company relinquished all its assets and business operations.

To facilitate the investment, UTel has agreed to cede 60% of its shares to Rowad Capital.

The Dubai-based company is expected to invest an initial $225 million in the telecom sector, aiming to revitalize UTel’s operational capabilities and enhance its market competitiveness.

The broader strategy behind this investment seeks to revamp Uganda’s telecom industry and attract foreign investment.

By aligning with the country’s regulatory framework, the government hopes to create a more dynamic and competitive telecom landscape.

In line with Ugandan regulations, UTel is required to list at least 20% of its shares on the Uganda stock exchange within two years.

This move aims to ensure transparency and public participation, a practice already adopted by major players like MTN Uganda and Airtel Uganda.