Telecom giants, Africell Uganda Limited have announced that effective in October they will cease operations on the Uganda market.
Africell Uganda Limited, one of Africa’s leading telecom companies, has announced that it plans to cease operations on the Ugandan market in October.
The exit comes seven years since they took over from a French company, Orange that sold its stake to them in 2014. In a letter, the company cited the poor market conditions that have proven difficult for them to continue their operations.
“Africell UG will stop services on October 7, 2021 . The decision is being made in the long term interest of the Ugandan telecom sector,” a company statement to its employees read.
“We believe that the opportunity to achieve this impact is increasingly limited. We have therefore taken the difficult decision to permanently end Africell UG’s operations in Uganda.”
Company Statistics up to April 2020 indicate that Africell’s number of subscribers was over 3,000,000 and this is expected to have grown. By exiting the Ugandan market, it means all these numbers will have to lose out.
In defence of this, however, the company said whereas they are no longer allowing new customers and line buyers, they are trying to reach out to most of their old customers requesting them to join other networks.
“As of September, 8, 2021, Africell UG is no longer accepting new customers. In the next month, we will be helping current customers switch to other operators,” the company said adding that all their employees will be allocated their salaries up to November 2021.
The company raised that this is aimed at ensuring they exit the country on good terms. Africell indicated that all its workers will also be given an annual leave allowance in addition to other severance packages.
“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.
Although Africell regrets the immediate impact this decision will have, we believe it is a justified long term transition and we are closely supporting affected employees and customers,” it added.
As a fast-growing mobile network operator in Africa, Africell has grown through the ranks enabling reliable connectivity, accelerate innovation and the growth of local communities.
Although the company is exiting the Ugandan market where they seem not to have fully performed to their expectations, they have deep operational knowledge grounded in a successful track record of two decades working across Africa in countries including Gambia, Sierra Leone, the Democratic Republic of the Congo and Angola.