Telecom company, Africell, has announced that they are winding up business in Uganda and will be exiting the country in October 2021.
Africell UG will stop services on October 7, 2021. The decision is being made in the long-term interest of the Ugandan telecom sector.Africell statement
In November 2014, Africell Uganda acquired all assets and liabilities from French telecom company — Orange Uganda, acquired from HITS telecom. At the time Orange left the market, they had accrued over 700B in losses. Seven years down the road, the company will be no more.
Africell says it has decided to end operations in Uganda as it did not see success in its plan to realize a digitally-led transformation.
“We believe that the opportunity to achieve this impact is increasingly limited. We have therefore taken the difficult decision to end Africell UG’s operations in Uganda permanently.”
Africell’s announcement comes barely a month after Smart Telecom announced their exit too. Smart Telecom, the brand name of Sure Telecom and is owned via an intermediary called Industrial Promotion Services (IPS) in Kenya.
Africell said it regrets the decision and its effects on employees and hopes the bonuses on the way out will help soften the punch.
“In addition to a full salary and benefits during your notice period, Africell UG will offer you severance pay and payment of unused annual leave allowance,” the company told employees.
Africell Uganda will not accept new customers from 8th September 2021 as they begin formally winding down their business in Uganda.