As part of MTN Uganda’s 12- year license renewal requirements by the regulator Uganda Communications Commission (UCC), the telecom giant is expected to list a 20 percent equity stake on Uganda Securities Exchange (USE) opening a window for East African investors to buy shares.
The government through the UCC has forced all its telecom mobile network operators, including MTN Uganda, Airtel Uganda, Africell, and more, to list a fifth of their shares on the Uganda Securities Exchange to allow locals to benefit from the sector’s profits. Ibrahim Bbosa, the Uganda Communications Commission spokesperson told Reuters.
“The shares are restricted to Ugandans, and also citizens from the East African Community (EAC),”
There was no immediate comment from MTN Uganda. According to the conditions set in the new licensing framework, a National Telecom Operator (NTO) like the telecom giant is expected to float its shares within two (2) years from the date of grant/ issuance of the license. This means the telecom giant still has enough time to float the shares.
The new framework by the Uganda Communications Commission was arrived at after a protracted consultative process, and it aims to boost investment in the sector and ultimately improve the quality of telecommunications services from companies like MTN. UCC made changes to it’s licensing framework to;
- Ease market entry and enhance competition
- Intensify the roll out of broadband Internet
- Enhance local ownership of telecom services
- Promote effective utilization of available resources
- Reduce burden of Operators having to cover the entire country
- Improve Quality of Service (QoS)
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