MTN Pays shs42.5bn in Statutory Levy to UCC

MTN Uganda has paid Shs 42.5 billion to the Uganda Communications Commission’s (UCC) Universal Service and Access Fund (USAF) as its statutory levy.

The amount represents 2% of MTN Uganda’s gross annual revenue for the financial year ending 31 December 2024, in compliance with the Communications Act and the terms of the company’s national telecommunications license.

The figure is an increase from the previous year’s Shs 36 billion contributed by the telecom company.

“At MTN Uganda, we firmly believe that universal access to connectivity is a fundamental enabler of socio-economic progress,” stated Sylvia Mulinge, Chief Executive Officer of MTN Uganda.

“Our contribution to the Universal Service and Access Fund is not merely a statutory requirement but a core tenet of our business ethos. We recognize that robust connectivity is the bedrock of a thriving modern economy, catalyzing advancements in education, revolutionizing healthcare delivery, and fostering financial inclusion through the power of digital technologies.”

Ms. Mulinge further emphasized that this enhanced support for the UCC’s initiatives directly aligns with MTN’s Ambition 2025 strategy of leading digital solutions for Africa’s progress.

This development is particularly pertinent in light of recent data from the UCC, which highlights the escalating demand for connectivity services nationwide.

The second quarter of 2023 witnessed a significant influx of 600,000 new mobile subscriptions, elevating the national total to 34.9 million and achieving a robust mobile penetration rate of 77 lines per 100 inhabitants.

Furthermore, active mobile internet users experienced a substantial 6% growth during the same period, reaching 12.5 million, largely propelled by the increasing adoption of smartphones as the primary mode of internet access for a significant portion of the Ugandan population.

The Executive Director of the Uganda Communications Commission, Thembo Nyombi, acknowledged the tangible impact of the USAF in expanding telecommunications access to underserved communities.

“Thanks to the strategic deployment of resources from the Universal Service and Access Fund, we have achieved significant milestones, including connecting 85% of government secondary schools with computer labs and internet access,” Mr. Nyombi noted.

He further highlighted the existing disparity in primary education, where a majority of students complete Primary Seven without any exposure to computer literacy.

Mr. Nyombi also revealed that the UCC has strategically utilized the USAF to establish 65 telecommunications masts in commercially unviable areas over the past two years, effectively promoting equitable access to essential digital services for all citizens.

Beyond infrastructure development, MTN Uganda is actively investing in cultivating digital literacy and accelerating smartphone adoption.

The company’s initiatives include driving the uptake of its affordable M-Kabode Supa smartphone and forging strategic partnerships to enhance the accessibility and value proposition of smartphones.

Furthermore, MTN Uganda has established over 42 ICT laboratories in educational institutions across the country and proactively engages communities through initiatives such as the MTN Internet Bus, which provides crucial ICT skills training.

“Today’s significant financial contribution to the Universal Service and Access Fund unequivocally demonstrates our unwavering resolve to drive meaningful digital inclusion,” Ms. Mulinge reiterated.

“We are committed to setting new benchmarks in ensuring that the transformative benefits of a digitally connected world are accessible to every Ugandan, leaving no one behind in this era of rapid technological advancement.”