US firm eyes Uganda investment
4 November 2016
Reports are suggesting that the US telecoms operator Hamilton Telecommunications is lining up an acquisition of fixed and mobile service provider Uganda Telecom Ltd (UTL). Earlier this month UTL denied rumours that Hamilton was looking to come on board as an investor, but Agence Ecofin now reports that a deal is back on the cards. UTL is currently 69% owned by Libyan telecoms investment fund LAP GreenN, with the other 31% held by the Ugandan government.
Over the past few years the Libyan firm has struggled to provide funding to help UTL modernise its networks, and the operator has consequently found it difficult to compete in the country’s mobile market with larger rivals MTN and Airtel, which between them control more than 80% of Uganda’s cellular subscribers.