Africell follows other giant companies, expected to exit Uganda

The Ugandan economy continues to suffer major blows after another giant company, Telecom company Africell announced that it will be exiting the Ugandan economy.

The telecommunication company entered the Ugandan market in 2014 after buying the stake of French Telecom company, Orange.

The exit will be ending a seven year stint in Uganda that has proved rather fruitless than the expected delivery.

According to the company, research conducted showed that they won’t be able to achieve their goals of creating a digital transformation in the country thus the need to exit.

“Africell UG will stop services on October 7, 2021 . The decision is being made in the long term interest of the Ugandan telecom sector. 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.” Africell Uganda announced.

In regards to their existing customers who numbered about 3 million subscribers by April 2020 and projected to have grown, Africell said that they have already put a plan in space.

For the new customers, it’s nolonger accepting any more subscriptions.

Just like Warid did when it merged with Airtel, Africell announced that it will help it’s current subscribers to merge with other operators .

“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.” Africell further announced.

The workers however are expected to cease operating in November and the company announced that all their dues will be paid fully.

“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.” Workers were assured by the company.

It’s said that heavy losses and debts suffered by the company in the seven years is what necessitated the imminent exit and this was probably catalysed by the pandemic.

Africell becomes the fourth high profile company exiting the Uganda market in a space of a month after ShopRite, Game and Smart Telecom all announced that they are exiting the Ugandan market.

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