Uganda’s telecommunications sector has marked another milestone in the drive to expand digital connectivity, with MTN Uganda remitting its statutory 2 percent levy contribution to the Uganda Communications Commission (UCC), a payment that will help fund the extension of communications services to underserved communities across the country.
According to UCC, the contribution was formally delivered on Monday as part of the operator’s obligations under the Uganda Communications Act. The levy plays a critical role in financing national efforts aimed at bridging the digital divide and ensuring that all Ugandans have access to reliable communication services.
In a statement, UCC described the payment as “an important milestone in advancing Uganda’s digital future,” noting that the funds will support initiatives designed to expand connectivity in areas that remain unserved or underserved by commercial telecommunications investments.
Under the law, half of the 2 percent levy is remitted to the government’s Consolidated Fund, while the remaining half is retained by UCC to finance the Uganda Communications Universal Service and Access Fund (UCUSAF).
The fund is a key instrument through which Uganda finances projects intended to promote universal access to information and communication technologies, particularly in rural and hard-to-reach areas where private sector investment may be commercially unviable.
“Today, MTN Uganda delivered its statutory 2% levy contribution to UCC, half of which goes to the Consolidated Fund and the other half is retained to finance the Uganda Communications Universal Service and Access Fund (UCUSAF),” UCC said.
The regulator added that the contribution will support the extension of reliable communications services to communities that remain outside the reach of adequate telecommunications infrastructure.
Uganda has made significant strides in expanding telecommunications coverage over the past decade, driven largely by investments from mobile network operators such as MTN Uganda and other industry players.
However, challenges remain, particularly in remote districts where internet penetration and network coverage lag behind urban centres.
Through UCUSAF, UCC has over the years implemented projects aimed at expanding broadband access, supporting ICT laboratories in schools, establishing community information centres, and extending telecommunications infrastructure to rural communities.
The fund has also been instrumental in promoting digital inclusion by supporting initiatives that improve access to internet services, digital literacy, and communication technologies for marginalized populations.
The latest contribution from MTN Uganda comes at a time when the country is increasingly prioritising digital transformation as a key driver of economic growth, service delivery, innovation and financial inclusion.
Government has identified ICT infrastructure as a critical pillar in achieving Uganda’s long-term development goals, with increasing emphasis on broadband expansion, e-government services, digital trade and technology-driven entrepreneurship.
UCC praised MTN Uganda for its continued support of national connectivity initiatives and its role in advancing digital inclusion.
“UCC appreciates MTN Uganda’s continued partnership in driving digital inclusion, universal access, and national connectivity for all Ugandans,” the Commission said.
MTN Uganda remains the country’s largest telecommunications operator by subscriber numbers and has invested heavily in network expansion, mobile financial services and broadband infrastructure. The company has repeatedly stated its commitment to supporting Uganda’s digital transformation agenda through investments in technology and connectivity solutions.
Industry analysts note that statutory contributions such as the UCUSAF levy are increasingly important as governments and regulators seek sustainable mechanisms to extend digital services beyond commercially attractive markets.
With demand for internet connectivity, mobile services and digital platforms continuing to grow across Uganda, the funding is expected to support ongoing efforts to ensure that no community is left behind in the country’s digital journey.
The contribution also underscores the growing collaboration between government, regulators and private sector operators in expanding access to affordable and reliable communications services, a development viewed as essential for unlocking opportunities in education, healthcare, agriculture, commerce and public service delivery.
As Uganda pushes forward with its digital transformation agenda, stakeholders say investments through UCUSAF will remain critical in connecting remote communities and ensuring that the benefits of the digital economy reach all parts of the country.
