In the past few days, there have been rumors of Facebook pulling the plug on its planned investment in Uganda. The reports claimed that Facebook was contemplating withdrawing its investment in Uganda following the introduction of OTT Tax. However, UCC termed the reports as fake news.
Statement by @kojoboakye during the referenced panel discussion is conveniently misinterpreted. "Our future investment would need to be considered in light of the tax" was the comment. While it has been clarified, the misleading reporting is being done intentionally in bad faith
— UCC (@UCC_Official) August 6, 2018
UCC tweeted that the news was fake. However, the commission did acknowledge that it had met with Facebook and that “issues of taxation were discussed at some point.”
Note that this is #FakeNews A meeting of mutual interest took place btn UCC & Facebook. Issues of taxation were discussed at some point. It was observed that, it is a natural process for many countries around the world to explore opportunities of cashing in on the digital economy https://t.co/cY79FODwnM
— UCC (@UCC_Official) August 6, 2018
Early last year, US-based social networking site Facebook signed an agreement Airtel Uganda to improve the telecom infrastructure in the country. The agreement aimed to extend over 500 miles of fiber cable to northern regions of Uganda. The Next Web estimated the project to cost about USD 170 million.
Multinational technology companies continue to fund internet infrastructure projects in virgin markets in a bid to extend their services. Google partnered with Roke Telekom to roll out public WiFi zones in Kampala to extend cheap internet services to people. Six years ago, Google rolled out Project Link in Uganda. This aimed to provide local internet service providers (ISPs) or mobile networks access to a more efficient infrastructure.
Facebook and Google have continuously launched multiple projects on the African continent so as to connect more people to there services
Facebook still committed to Investment in Uganda and Africa
The behemoth Social Media has brushed off claims of withholding investment in Uganda as a response to the levy on OTT Services. According to Facebook, there was misinterpretation of a comment from one of their officials.
“We are committed to Africa and our current connectivity work in Uganda. We continue to maintain open and active lines of communication with the Ugandan government, the private sector and members of civil society,”. a spokesperson for the social media giant said.
Facebook has recently completed a 770 kilometer fiber build in northwest Uganda. This is to provide more than 3 million Ugandans with connectivity infrastructure. The social network says that this could also lead to cross-border connectivity to neighboring countries.
