Africa Economy Government Tech Telecom Uganda

MTN to list shares in Uganda stock exchange for long-term operational licence

MTN Uganda has finally moved to list 20% of its shares on the Ugandan Securities Exchange. The Telco has to list to obtain a long-term operational licence in the country. This will put an end to the clashes between the mobile operator and the government.

The government had earlier instructed Telcos to obtain National Telecom Licences. They were mandated to list at least 20% of their company shares within the first two years of obtaining the licence. In response, MTN has agreed to pay the $100 million for the issuance of the fourteen-year-long licence. The fee will be paid in two instalments to the Ugandan Revenue Authority.

The government is issuing the licence permits specifically to National Public Service Providers, Regional Public Service Providers, National Public Infrastructure Providers and Regional Public Service Providers. Telecommunication companies are to effectively run their operations under any of the categories without clashing with government policies.

The licence will take effect from June 30th 2020. MTN will gain full geographical access to the country. It will improve the quality of its telecommunication services for both new and existing customers. It will also give room for public investment in mobile network operators.

Source: Tech Gist Africa

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