Africell has announced it will stop operations in Uganda on October 7th following eight years of service.
Africell launched its commercial operations in Uganda in November 2014 after acquiring shares of Orange Uganda earlier in the year for $12 million and inherited an estimated 1,000,000 subscribers at the time of its purchase.
In a letter addressed to its employees, Africell admits it has failed to achieve its goals in the Ugandan telecoms sector.
Over the past several months, Africell Group has conducted a detailed assessment of the future of Africell UG. Africell strives to be a leader not only in terms of mobile services but also in terms of community impact and the digitally-lead Transformation of society. In Uganda – a country with a mature and competitive telecoms sector – we believe that the opportunity to achieve this impact is increasingly limitedAfricell
We have therefore taken the difficult decision to permanently end Africell UG’s operations in Uganda. This decision is being made in the long-term interests of the Ugandan telecoms sector. However, it has an immediate impact on many people – including you, a valued Africell employee
Africell has been struggling in Uganda’s telecom sector. After failing to break into MTN and Airtel clientele, they resorted to selling data bundles.
An insider has intimated to us that they tried everything in their power and even hired consultants to stay in the market but failed.
Africell is not the only company pulling out of the Ugandan market over losses, Game and Shoprite announced they will be exiting Uganda too.
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