Rumours that telecom operator Africell Uganda is closing operations have been confirmed after a leaked staff memo confirmed that the company is ceasing operating in Uganda on October 7, 2021.
Africell had to address staff after their plans to exit the Ugandan market started making rounds.
“After careful consideration, Africell Group has decided to leave Uganda and focus on other opportunities for social and commercial impact,” the memo reads in part.
“We have tgaken the difficult decision to permanently end Africell UG’s operations in Uganda.
“As od 8 September 2021, Africell UG is no longer accepting new customers. In the next month, we will be helping current customers switch to other operators.”
“We are sorry to communicate this bad news. Africell UG values your hard work and we thank you for your contribution to the company,” the company said.
Employees have been told that their contracts will expire on November 30. They have been promised a severance pay, payment of unused annual leave allowance, repatriation pay where applicable and “training and support from a dedicated on-site professional.”
Africell started operating in Uganda in 2014 after acquiring Orange Uganda for a reported $12m. They inherited one million customers from the take over.
Africell has been the third largest telecom operator in Uganda after MTN and Airtel, and they were famed for their affordable Internet data bundles.
At the time of taking decision to throw in the towel, Africell had reportedly accumulated Shs1.5b in losses and Shs258.3b in debts.
Africell has telecommunication operations in Gambia, Sierra Leone, and DR Congo.