MTN pays Shs50 billion levy to boost Uganda’s digital economy
MTN Uganda CEO Sylvia Mulinge (left) hands over a dummy cheque for Shs50.55 billion to Uganda Communications Commission (UCC) Executive Director Nyombi Thembo during the announcement of the company’s contribution to the Universal Service and Access Fund in Kampala on May 15, 2025. PHOTO/ISMAIL MUSA LADU
What you need to know:
- The funds will be used to expand rural connectivity, support ICT in education and agriculture, promote access for persons with disabilities, enhance digital literacy, and provide free smart devices.
MTN Uganda has paid more than Shs50 billion to the country’s telecom regulator, the Uganda Communications Commission (UCC), as part of a statutory levy aimed at bridging digital gaps and improving access to ICT services in underserved areas.
The contribution, the highest among telecom operators, is part of the industry’s 2 percent gross revenue obligation to the Universal Service and Access Fund, a mechanism managed by UCC to support connectivity, digital literacy, and infrastructure across Uganda’s rural and remote regions.
The fund, originally known as the Rural Communications Development Fund, is central to efforts to increase smartphone usage in Uganda, which remains critically low.
Only 36 percent of mobile subscribers use smartphones, compared to 72 percent in Kenya and over 90 percent in South Africa, according to the UCC’s 2024 report.
“Although this financial contribution is a legal obligation, what we appreciate is the spirit with which MTN meets it—consistently, on time, and without need for reminders,” UCC Executive Director Nyombi Thembo said during a media briefing in Kampala on Wednesday.
Thembo hailed MTN’s growing contributions, noting they had risen steadily from Shs36 billion in 2023 to Shs42.5 billion in 2024 and now to Shs50.55 billion.
“This growth signals a thriving telecom sector, supported by an enabling legal and policy environment,” he said.
Under the 2 percent levy, half of the funds go to the national Consolidated Fund, while the remainder supports the Uganda Communications Universal Service and Access Fund (UCUSAF).
According to Thembo, the fund enables the government to deliver services where the private sector sees no commercial incentive.
“We must think about every citizen, especially those in hard-to-reach areas. That’s where UCUSAF steps in—to bridge the digital divide,” he said.
The funds will be used to expand rural connectivity, support ICT in education and agriculture, promote access for persons with disabilities, enhance digital literacy, and provide free smart devices.
“Together, we can build a Uganda where every citizen,” Thembo said.
Driving digital transformation
MTN Uganda’s Chief Executive Officer, Sylvia Mulinge, described the payment as part of the company’s broader commitment to building a fully digital economy.
“We believe everyone deserves the benefits of a modern, connected life,” Mulinge said, adding: “This contribution reflects our continued investment in affordability, infrastructure, and digital skills.”
She pointed to MTN initiatives such as M-Kabode Supa, a smartphone financing programme, and various partnerships aimed at lowering the cost of devices.
“As a result, smartphone penetration on our network has increased from 39 percent to 45 percent over the past year,” Mulinge noted.
Beyond affordability, the telecom giant is also working to close the skills gap. MTN has so far established 63 ICT labs in educational institutions and delivers digital training through its MTN Internet Bus, a mobile classroom that travels to remote communities.
“Access to infrastructure is important, but access to knowledge and skills is equally critical. We are investing to ensure no one is left behind as Uganda advances in its digital journey,” said Mulinge.
MTN ended 2024 with a profit of nearly Shs642 billion, a 30 percent increase from the previous year. Its contribution represents a major share of the Shs87 billion paid to UCC by Uganda’s two leading telecom firms this year.
Mulinge reaffirmed MTN’s readiness to collaborate with the UCC and other stakeholders to close the digital divide, improve literacy, and make technology accessible to all.
