MTN Uganda announces UGX 50.55 billion contribution to UCC’s Universal Service and Access Fund

MTN Uganda has today announced a contribution of approximately UGX 50.55 billion to the Uganda Communications Commission’s Universal Service and Access Fund (UCUSAF), marking the company’s largest annual contribution to date towards expanding telecommunication services in underserved communities.

This development reflects MTN Uganda’s deepening commitment to accelerating digital inclusion and supporting national efforts to expand ICT infrastructure and services to all Ugandans, regardless of location or income level.

The announcement was made during a stakeholder engagement held at the UCC headquarters in Kampala. The contribution represents a significant increase from UGX 42.5 billion in 2024 and UGX 36 billion in 2023, reinforcing MTN Uganda’s resolve to go beyond compliance in fulfilling its obligations as a National Telecommunications Operator (NTO).

In line with statutory requirements, all  telecom operators in Uganda are mandated to contribute 2% of their annual gross revenues to UCUSAF, which is administered by the Uganda Communications Commission.

Established in 2001, the fund—initially known as the Rural Communications Development Fund (RCDF)—is designed to address challenges related to connectivity, access, affordability, and equitable distribution of ICT services, particularly in rural and underserved areas.

“At MTN, we believe that everyone deserves the benefits of a modern, connected life,” said MTN Uganda CEO Sylvia Mulinge. “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.”

The Executive Director, Uganda Communications Commission, Hon. Nyombi Thembo, said:

“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. You continue to pay consistently, and on time. That kind of commitment is not something we take lightly, and we sincerely commend you for it.”

MTN Uganda’s contribution comes amid growing concern over Uganda’s low smartphone penetration rate. According to UCC’s Fourth Quarter 2024 report, only 35.6% of Uganda’s 51 million mobile subscribers are using smartphones, compared to 72% in Kenya and over 90% in South Africa.

To help address this gap, MTN Uganda has intensified efforts through initiatives such as the M-Kabode Supa smartphone financing programme and various strategic partnerships aimed at making smart devices more affordable and accessible. As a result, smartphone penetration on MTN’s network has risen from 39.1% to 44.9% over the past year.

Beyond device affordability, MTN Uganda continues to invest in capability-building. The company has established 63 ICT labs in educational institutions across the Country and is actively delivering hands-on digital training through the MTN Internet Bus, equipping learners and communities with critical skills needed to participate in a digital economy.

“Access to infrastructure is important, but access to knowledge and skills is equally critical,” added Mulinge. “We are investing to ensure that no one is left behind as Uganda advances in its digital journey.”

MTN Uganda reaffirmed its commitment to working closely with the UCC and other key stakeholders to close the gaps in affordability, digital literacy, and equitable access to communications technology.