Uganda nationalizes Libya’s share in UTL

Uganda nationalizes Libya’s share in UTL

March 04, 2017 - 21:31
Posted in:
Written By: AbdullahBenIbrahim

The Ugandan government has taken over Uganda Telecom Limited (UTL), the country’s national fixed line, mobile and internet provider, in which Libya a majority shareholder.

Libyan Ambassador to Uganda Fawazi Abu Katif said the Ugandan government informed the embassy about its decision to take full control of UTL management as from March 01.

“Yesterday, The Minister of Finance Matia Kasaija announced the decision of The Government of Uganda to take over the operations of UTL with immediate effect following notification received from the majority shareholder UCOM stating that they will no longer avail funding to the company.” A statement by the new management of UTL said on Thursday.

Libya owns a share of 69% of the company's capital estimated at $ 270 million, while 31% is owned by Uganda.

The Libyan embassy expressed regret about the seizure despite several calls it made to government authorities in Libya to intervene and protect Libyan investments from the Ugandan threats to nationalize UTL.

In 2015, Ambassador Abu Katif reported the Ugandan intention to take over UTL to the General National Congress and the Libyan Telecommunication Holding Company, but no action has been taken.