Uganda’s two leading telecommunications companies have contributed over UGX 88 billion to the Uganda Communications Commission (UCC), aimed at advancing rural digital connectivity across the country.
On Tuesday, Airtel Uganda remitted UGX 37.9 billion to UCC, following MTN Uganda’s earlier contribution of UGX 50.55 billion. These contributions represent 2 percent of each company’s gross annual revenue, as mandated by law.
The funds are part of the statutory obligations of licensed telecommunications operators under Section 3(g) of the Uganda Communications Act, 2013. The law mandates UCC to manage the Uganda Communications Universal Service and Access Fund (UCUSAF), dedicated to developing rural communications and expanding ICT access throughout Uganda.
As per the Act, all licensed telecom operators are required to contribute 2 percent of their gross annual revenue. Half of this amount is remitted to the Consolidated Fund, while the other half goes to UCUSAF to support the development of communications infrastructure in underserved and unserved areas.
MTN Uganda’s contribution this year increased by UGX 12 billion compared to last year, while Airtel Uganda’s contribution rose from UGX 34.8 billion.
Speaking at the cheque handover ceremony, MTN Uganda CEO Sylvia Mulinge stated, “At MTN Uganda, we believe that everyone deserves the benefits of a modern, connected life. This contribution is part of our broader strategy to support Uganda’s transformation into a fully digital economy by investing not only in infrastructure but also in affordability, access, and digital skills.”
During Airtel Uganda’s handover event, Managing Director Soumendra Sahu emphasized the shared vision between Airtel and UCC in bridging the digital divide. He noted, “This contribution is not merely about fulfilling a license obligation; it is a strategic investment in Uganda’s digital future—a future where every Ugandan can access fast, reliable, and affordable communication services.”
He added, “Together with UCC, we are not just laying down infrastructure, but creating opportunities—for students to learn, for farmers to access market information, and for small businesses to grow.”
UCC Executive Director Irene Kaggwa Sewankambo commended the telecom operators for meeting their obligations consistently and in good faith. She noted that the steady increase in contributions reflects a thriving telecom sector, bolstered by a supportive legal, policy, and regulatory environment.
Regarding the utilization of the funds, UCC Director for Rural Communications, Nyombi Thembo, explained that the portion retained by UCC is used to expand broadband and voice coverage in rural communities, provide ICT access in schools and health centers, and promote digital inclusion nationwide.
The Rural Communications Development Fund (RCDF)—now known as UCUSAF—was originally established in 2001 under the Uganda Communications Act of 1997. The fund has remained a vital part of Uganda’s communication development framework, evolving through successive updates in the Uganda Communications Act 2013.
The fund was created to promote universal access to communications services by supporting projects in commercially unviable regions—areas typically underserved or left out by market forces.
UCUSAF has undergone three implementation cycles:
- RCDF I (2003–2009)
- RCDF II (2010–2016)
- RCDF III (2017–2023)
It is currently operating under UCUSAF IV, which aims to achieve “Digital Inclusivity through sustainable interventions and impactful collaborations.” This strategy is built on four pillars: Access, Adoption and Usage, Value Creation, and Cooperation.
These pillars support five strategic objectives:
- Increased broadband access
- Enhanced use of digital devices and services
- Promotion of ICT applications and services
- Data-informed decision-making
- Strengthened multi-sector collaboration
Although UCUSAF functions as a semi-autonomous entity, it operates as a department within UCC, continuing to play a critical role in extending digital access and equity across Uganda.