MTN contributes sh50b to UCC’s telecom access fund

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MTN has contributed sh50.55b to the Uganda Communications Commission’s (UCC) Universal Service and Access Fund, its largest annual payment yet toward expanding telecom access in underserved areas.

The amount represents a rise from sh42.5b in 2024 and sh36b in 2023. The payment is part of MTN’s obligations under its National Telecommunications Operator (NTO) license and reflects its increasing investment in digital access and infrastructure.

Officials from UCC led by the ED Thembo Nyombi and MTN officials led by CEO Sylvia Mulinge pose for a photo. (Courtesy photo)

Telecom companies in Uganda are required by law to contribute 2% of their annual gross revenue to the fund, which is managed by the UCC. The fund, launched in 2001 as the Rural Communications Development Fund, is intended to improve access, affordability and equity in digital services across the country.

MTN CEO Sylvia Mulinge said the contribution is part of the company’s broader plan to support Uganda’s digital transformation.

“We believe that everyone deserves the benefits of a modern, connected life. This contribution is part of our broader strategy to support the transformation of Uganda into a fully digital economy, by not only investing in infrastructure but also enabling affordability, access, and digital skills,” she said.

Nyombi Thembo, executive director at UCC said MTN had shown a consistent and timely approach to meeting its legal obligations.

Nyombi Thembo, executive director at UCC speaking during the event. (Courtesy photo)

“Although the financial contribution being announced today is a legal obligation under the terms of your licence, what we appreciate deeply is the spirit with which you meet this obligation. That kind of commitment is not something we take lightly, and we sincerely commend you for it,” Thembo said.

Uganda continues to face a low smartphone adoption rate. Only 35.6% of mobile subscribers use smartphones according to the UCC’s latest quarterly report, compared to 72% in Kenya and more than 90% in South Africa.