Telecom service provider MTN Uganda is set to sell 20 per cent of its shares to Ugandans and East Africans willing to buy them.
Currently, the government of Uganda is forcing all telecom operators, including MTN Uganda and Airtel, to list a fifth of their shares on the Uganda Securities Exchange to allow locals benefit from the sector’s profits. However, Eagle Online has learnt that MTN is negotiating National Social Security Fund to have the fund purchase the shares instead.
According to a source in MTN, the company will soon list its shares and advertise for people to take up shares. The source confirmed the shares will be listed next year.
“Kindly be more patient as soon as we list our shares, it will be advertised. Please note that it is work in progress.” The source said. When asked whether it is part of the conditions as the government renewed its contract, the source declined to reveal.
The development was confirmed by the spokesperson of Uganda Communications Commission Ibrahim Bbosa who said that the shares are limited to Ugandans and East Africans from Tanzania Burundi, Kenya, Rwanda and South Sudan.
This comes at the time when the government had just renewed the telecom’s contract. Earlier this month, the government granted a 12-year operation license extension for MTN Uganda.
MTN Uganda was first granted a Second National Operator License for the provision of telecommunications services on October 20, 1998 for a period of 20 years.
The telecommunication giant paid $100 million for renewal of the license. The license, having expired in October 2018, was followed by protracted negotiations involving the government, UCC and MTN Uganda, culminating in this breakthrough.