Museveni Orders UTel Deal Cancelled Over Missing US$25M
BUSINESS · UGANDA
Key Facts
- —The country Uganda, a landlocked East African state of about 46 million people (2024 census). President Yoweri Museveni has led it since 1986.
- —Why it matters UTel, the state-owned telecom operator, was meant to run Uganda’s national fibre backbone with Gulf money. That plan now looks set to fall back on the state budget.
- —Why now Nile Post reported on Friday 9 October that Museveni had ordered the agreement with Dubai-based Rowad Capital Commercial cancelled.
- —What happened At State House on Tuesday 6 October, Museveni told the Deputy Attorney General to start cancelling it. The cause: an unpaid initial US$25 million, Nile Post reported.
- —The numbers A US$225 million package for a 60% stake. US$25 million was due within 90 days, then US$200 million over three years.
- —What it means for US readers Kampala is showing it will pull strategic assets back from investors who miss payment deadlines. Contract terms and milestones matter more than headline pledges.
- —Still open No State House statement or Rowad response had appeared by Saturday morning, and no cancellation notice has been published.
Uganda’s President Yoweri Museveni has ordered the government to cancel the UTel deal with Dubai-based Rowad Capital Commercial. The Kampala outlet Nile Post reported it on Friday 9 October. The reason given is money: an initial US$25 million that was promised and, according to the report, never arrived.
The decision matters beyond Uganda. It hands a national telecom operator and the country’s fibre backbone back to the state. It also shows foreign investors, American ones included, how Kampala treats unmet commitments.
The order was given at a meeting at State House on Tuesday 6 October. Museveni, 82, has led Uganda since 1986 and won a seventh term in January’s election. He heads the governing National Resistance Movement.
What Museveni Ordered
According to Nile Post, the president directed the Deputy Attorney General, the government’s second law officer, to act. The task is to start the legal process of cancelling the agreement with Rowad.
He also asked the ministries concerned to prepare a Cabinet paper. It would propose that the government itself pays for the revival of Uganda Telecommunications Corporation Limited, known as UTel. That would move the burden from a private investor to the public budget.
The report says Museveni was frustrated that the investors wanted control of two things without paying in first. One was UTel’s own assets. The other was the National Backbone Infrastructure, the state-owned fibre-optic network that links government offices and carries public digital services.
Nile Post reported that he called the investors “bafere”, a Luganda word commonly used for conmen or fraudsters. That is his word, as reported, not a finding. No court or arbitrator has ruled on whether Rowad breached the contract.
The story rests on Nile Post’s account of the meeting. The Rio Times found no matching statement in the State House news feed by Saturday morning, and the directive has not been independently confirmed.
How the Rowad Deal Was Built
The agreement was signed on Friday 25 October 2024 at State House in Entebbe, with Museveni as witness, according to a State House statement issued at the time. Chris Baryomunsi, then minister of ICT and national guidance, signed for the government.
The statement said the government would “immediately partner with RCC to revamp and rejuvenate UTCL”. RCC is Rowad Capital Commercial; UTCL is UTel’s formal name.
The terms were set out in Parliament on Thursday 3 April 2025. Baryomunsi told the ICT committee that Rowad would hold 60 percent of UTel. The government would keep 40 percent: 25 percent for the finance ministry and 15 percent for the ICT ministry. That is according to a report of the hearing by TechAfrica News.
Rowad was to make an initial investment of US$25 million and then US$200 million over the next three years. Nile Post adds that the first tranche was due within 90 days.
The deal also moved management of the fibre backbone to UTel. Until then it had been run by Soliton Telmec under a 15-year contract with the National Information Technology Authority. Baryomunsi said that contract would be ended early, with compensation the state would pay.
At the same hearing he said a joint UTel board had been named. It was to open a bank account for the first payment. Whether money ever reached that account is the core of the dispute.
Museveni has turned on partners before when he felt Uganda was short-changed. For an earlier case, see Museveni Ditches Ruto, Says Kenya Oil Import Scheme Swindled Uganda.
What It Means for US Readers
There is no direct US stake in UTel. The signal is wider. Uganda wants foreign capital for oil, power and digital networks, and US firms compete for that work.
This episode shows the government will reclaim strategic infrastructure when an investor misses a deadline, and do it fast. For a US company that is both a risk and a reassurance. The rules bite, but deals with clear milestones and early payments are taken seriously.
It also raises a budget question. If the state funds UTel itself, money competes with roads, power and debt service. The size of any public injection is not yet known.
For background on the wider economy, see Uganda Explained: Museveni’s Uganda, the Long Wait for Oil, the Economy and What to Watch.
What Is Not Known
Rowad has not commented in public. Its side of the story, including whether it paid any part of the US$25 million or disputes the deadline, is missing.
The legal route is unclear. The contract may contain notice periods or arbitration clauses, and none have been published.
The timeline is also uncertain. Nile Post speaks of four years without the money, while the signing took place in October 2024. Talks began well before the signing: Red Pepper reported in April 2024 that Museveni had already asked RCC to commit at least US$25 million within 90 days.
Finally, the Cabinet paper does not yet exist. How much the state would put into UTel, and when, is not known.
Frequently Asked Questions
What is the UTel deal?
It is an agreement signed on 25 October 2024 between Uganda’s government and Dubai-based Rowad Capital Commercial. Its aim was to revive UTel. Rowad was to take 60% of UTel for US$225 million in staged investment.
Why did Museveni order the UTel deal cancelled?
According to Nile Post, he was angry that the initial US$25 million had not been paid. Meanwhile the investor sought control of UTel’s assets and the state fibre network.
Is the UTel deal already cancelled?
Not on the public record. Nile Post reported a directive to the Deputy Attorney General to start the legal process. No cancellation notice, court filing or State House statement had been published by Saturday morning.
Who will fund UTel now?
Museveni asked ministries to prepare a Cabinet paper proposing that the government itself pay for UTel’s revival. The Cabinet has not yet decided, and no amount has been named.
Has Rowad Capital Commercial responded?
No public response from Rowad had appeared by Saturday morning. The claim that it failed to pay comes from the president’s side and has not been tested by any court or arbitrator.
Sources: Nile Post, 9 October 2026; State House Uganda, statement on the 25 October 2024 signing; Red Pepper, April 2024; TechAfrica News, report of Parliament’s ICT committee hearing, 3 April 2025; State House Uganda news feed.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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