Why Africell is exiting Uganda’s telecom market

By XINHUA -Updated at 0956 GMT on Wednesday 08th September 2021

Africell, one of the mobile network operators in Africa, on Tuesday announced that it will stop operations in Uganda early next month.

The operator in a statement posted on its website said it will exit the Ugandan market on Oct. 7, where it has been since 2014 when it acquired assets of Orange Uganda, another operator.

The company said the decision to leave is based on its assessment of the long-term commercial outlook for the business and its fit in the group strategy. The telecommunications company also operates in the Democratic Republic of the Congo, Sierra Leone, and The Gambia.

Africell said it is working with the Uganda government and the telecommunications regulator, Uganda Communications Commission (UCC) to ensure a smooth transition.

“Africell UG is working directly with the UCC and other local mobile network operators to make the migration process as smooth as possible for customers who will need to switch to alternative providers,” the statement said.

The company said it has been providing service to over a million customers across the east African country.

Uganda’s telecommunications sector is mainly covered by MTN Uganda and Airtel Uganda.

Clan

HICGI News Agency has learnt from insiders with knowledge about the dealings of the company, losses incurred by the company and debts necessitated its immediate exit from the Ugandan market that it entered seven years back.

The development comes a few weeks after South African retail giants Game and Shoprite announced leaving Uganda among some of the other markets they are exiting in Africa.

Aga Khan owned Smart Telecom also announced it was leaving Uganda.

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