MTN Pumps Whopping Shs50.55bn into Uganda’s Connectivity Future

MTN Uganda has made its largest-ever annual contribution to Uganda’s digital transformation, injecting Shs50.55 billion into the Universal Service and Access Fund (UCUSAF). The telecom giant’s substantial investment, announced at the Uganda Communications Commission (UCC) headquarters in Kampala, underscores its commitment to expanding connectivity and bridging the digital divide in underserved communities across the country.

The contribution marks a significant increase from previous years, rising from Shs36 billion in 2023 to Shs42.5 billion in 2024 before reaching this year’s record amount. While Ugandan law requires all telecom operators to contribute 2% of their annual gross revenues to UCUSAF, MTN Uganda has consistently exceeded expectations, demonstrating its proactive approach to national development. The fund, established in 2001 as the Rural Communications Development Fund, plays a crucial role in improving connectivity, affordability, and equitable distribution of information and communication technology services, particularly in rural and hard-to-reach areas.

Sylvia Mulinge, CEO of MTN Uganda, emphasized the company’s vision for a digitally inclusive Uganda. “At MTN, we believe that everyone deserves the benefits of a modern, connected life,” she said. “This contribution reflects our broader strategy to support Uganda’s transformation into a fully digital economy by investing not just in infrastructure but also in affordability, access, and digital skills development.”

Hon. Nyombi Thembo, Executive Director of UCC, praised MTN Uganda for its consistent and timely contributions. “While this financial commitment is a legal obligation under your license terms, we deeply appreciate the spirit with which you fulfill it,” Thembo acknowledged. “Your reliability in meeting these obligations is commendable and sets a positive example for corporate responsibility in our sector.”

The record contribution comes at a critical time for Uganda’s digital landscape. According to UCC’s Fourth Quarter 2024 report, smartphone penetration stands at 35.6% among all mobile subscribers, lagging behind regional counterparts. In response to this challenge, MTN Uganda has implemented several innovative initiatives to boost device affordability and digital adoption.

The company’s M-Kabode Supa smartphone financing program has emerged as a game-changer, enabling more Ugandans to own smart devices through flexible payment plans. This initiative, combined with strategic partnerships, has already yielded impressive results, increasing smartphone penetration on the MTN network from 39.1% to 44.9% within a single year.

Beyond hardware accessibility, MTN Uganda has made substantial investments in digital literacy programs. The telecom provider has established 63 ICT laboratories in educational institutions nationwide and operates the MTN Internet Bus, a mobile training unit that delivers hands-on digital skills instruction to students and community members across the country.

“While infrastructure development remains crucial, we recognize that knowledge and skills are equally important for meaningful digital inclusion,” Mulinge explained. “Our comprehensive approach addresses both the physical and educational barriers that prevent many Ugandans from fully participating in the digital economy.”

The UCUSAF plays a pivotal role in Uganda’s digital transformation strategy, funding projects that extend communication services to underserved populations. These initiatives include the construction of telecommunications infrastructure in remote areas, community ICT centers, and support for innovative solutions that address connectivity challenges. MTN’s increased contribution will significantly boost these efforts, potentially accelerating the government’s goal of achieving universal digital access.

As Uganda continues its journey toward becoming a fully digital society, partnerships between private sector players like MTN Uganda and regulatory bodies such as UCC become increasingly vital. The telecom company has reaffirmed its commitment to working closely with the UCC and other stakeholders to address persistent gaps in affordability, digital literacy, and equitable access to communication technologies.

The impact of MTN’s contribution extends beyond immediate connectivity improvements. Enhanced digital access has far-reaching implications for education, healthcare, agriculture, and financial inclusion – all critical sectors for Uganda’s socioeconomic development. With better connectivity, rural farmers can access market information, students can utilize online learning resources, and small businesses can tap into digital financial services.

Looking ahead, MTN Uganda plans to maintain its leadership role in driving digital inclusion. The company’s multi-pronged strategy combines infrastructure investment, device affordability programs, and digital skills training to create a comprehensive ecosystem for digital participation. This approach aligns with both Uganda’s national development goals and MTN’s broader corporate vision of leveraging technology to improve lives across Africa.

As the digital landscape evolves, MTN’s record contribution to UCUSAF sets a new benchmark for corporate participation in national development initiatives. The investment not only demonstrates the company’s financial commitment but also reflects its understanding of telecommunications as a fundamental driver of economic growth and social progress.

With this substantial funding injection, underserved communities across Uganda can look forward to improved connectivity and greater opportunities to participate in the digital economy. As MTN Uganda continues to innovate and collaborate with stakeholders, the vision of a fully connected Uganda appears increasingly within reach, promising to transform lives and livelihoods through the power of digital technology.

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