MTN renews Uganda operating license after two-year negotiation

The MTN Group seem to heave a sigh of relief following the renewal of its license few in Uganda where it paid a $100m renewal fee for a period of 12 years starting this July. MTN, Africa‘s largest mobile operator by subscribers, has finalised a deal that will see it carry on its operations in Uganda for another 12 years.

Speaking on the need to renew its operational license in Uganda, MTN said it is “pleased to announce the conclusion of negotiations for the renewal of its second national operator license which expired in October 2018”.The mobile operator said it had met all conditions, including the payment of $100m (R1.7bn) as a renewal fee for a period of 12 years starting July 1 2020. Renewal negotiations have been ongoing for close to two years with Ugandan authorities. MTN was first allowed to operate in the East African country for 20 years back in April 1998.

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The mobile network operator had applied for a 10-year extension and the Uganda Communications Commission (UCC) gave it an interim license, pending resolution of a number of unspecified issues. Ugandan authorities have previously said that MTN had agreed to list its shares on Uganda’s local bourse as a condition of renewing its license. MTN Uganda is the country’s biggest telecom company with more than 10-million subscribers. It competes with a local unit of India’s Bharti Airtel, as well as smaller companies. MTN said it will conclude the signing of the agreement with the UCC in the next few days.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry