This Mango has gone through a lot. A former state company sold to Libyan investors and after the Libyan credit started to fail. The Ugandan Telecom Company (UTL) or Mango started to suffer too. The Telecom have been so hard hit that three years ago the state had to take it over.
There been so many twists and turns, where the company have been rumoured and speculations. Even the Minister and owners was speculated to moved to a shell company in Mauritius. Therefore, today’s sudden windfall and paying off debts. Is only bailing out a sinking ship and hoping it still doesn’t sink.
The UGX 45.6 Billions to the TDB (Eastern & Southern Trade & Development Bank). With this payment of this debt. The state is initially taking over UTL. This as they plans to make the UTL attractive to investors again. Mango haven’t been viable for years…
The Libyan Post ditched in March 2017 and since then it has struggled. The Libyans said the Government of Uganda needed to figure out a transformation plan for the UTL. It has clearly taken three years to figure this out. That nobody wanted to takeover the loans of a company, which haven’t invested in Telecommunications in years. Where the changes of mobile data, 3G and 4G networks for smartphones. The UTL haven’t had the funds or the ability to change with the times.
UTL is struggling because the state haven’t been able to save it before now. The regime needed over three years to figure this out. This with the steady leadership of Evelyn Anite, Frank Tumwebaze and Gen. Kahinda Otafiire interfering all at different times. While they have all done their part … it still took the Committee until now to secure payment for the debts. This should have been resolved earlier, if they intended to make it viable business.
In 2017, Anite even wanted all Ugandans for Patriotic reasons should have one UTL line. Maybe, she thinks everyone has a Airtel, MTN and could have UTL sim-cards in their phones. As the usual person should have at least double or dual sim-cards.
This all been a long lasting saga, which shouldn’t take this long. It is a fledging company. A former state corporation privatized and sold for scraps to Libya investors. Who earned on it in the good times, but ditched it when it got hot. Because, it been years since the UTL been viable and been a commodity.
This Mango is rotten. The Mango tree isn’t yielding any fruits anymore. This is a Walking Dead Enterprise. A Telecom who has no traction and is only throwing good money for bad investments. The money could have been burned in a street or thrown down a storm-drain, and it would still have more sense then investing it here.
UTL is being saved, but was it worth saving? Does it have any assets or financial liabilities worth mentioning? The competitors are miles ahead and the UTL needs huge investments to be in the same arena. Do they think another investor will spend money like a drunk uncle in a market, which is already filled with big companies. Who has small margins and higher taxes.
Therefore, the ones doing it … has to be regime “friendly” and willing to throw away good money for a bad investment. Peace.