Uganda to write off part of UTL debt

31 Jan 2018

Uganda’s President Museveni has ordered the government to write off debts of UGX200 billion (USD91.3 million) owed by the state-owned fixed line operator Uganda Telecom Ltd (UTL). The company entered receivership last year after accruing debts of around UGX900 billion, though this has since been brought down to around UGX533 billion, The Monitor reports. The Ugandan state assumed control of UTL in March 2017 after ousting 69% shareholder LAP GreenN of Libya. UTL is thought to owe UGX58 billion to the Uganda Revenue Authority, UGX22 billion to Uganda Communications and UGX16 billion to the National Social Security Fund, with other creditors including shareholder loans, equipment vendors and rival telcos.

Meanwhile, President Museveni says that all government offices and agencies should switch to using UTL internet services in an effort to support the state-run telco. Government services are currently provided by the National Information Technology Authority, Uganda (NITA-U) – a body which operates as part of the Ministry of ICT.

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