Airtel’s Shs50b dividend shows Museveni’s strategy working

By Ben Ssebuguzi

A few days ago, Airtel Managing Director Mr. Soumendra Sahu handed over UGX 50 billion in dividends to the National Social Security Fund (NSSF), following the latter’s initiative to buy Airtel shares worth UGX 199 billion in 2023.

Given the significance of this sector, this should be headline news across the internet for a week. It proves that Uganda is a very profitable destination for foreign direct investments (FDIs), and it’s a great milestone for the stock exchange market in Uganda’s socioeconomic transformation.

I remember a few years ago when the President of Uganda, while meeting directors of one major telecom company, made it a condition for the renewal of their license that Ugandans must have a stake in their company. That pronouncement changed the game, demonstrating once again how deeply President Yoweri Museveni cares about empowering Ugandans.

This bold move by the President signaled that he doesn’t settle for less. It is something for which we must hold him in high regard and appreciate him at every opportunity.

Sadly, Ugandans do not have a culture of publicly appreciating our heroes who go the extra mile to negotiate in the interest of Ugandans rather than their own stomachs. Yet the importance of gratitude, recognizing the good in others and in our lives, fosters joy and positive transformation. We should practice it more often.

I suspect that some technocrats from the Uganda Communications Commission (UCC), the nation’s telecom regulator, and some politicians would not have had the courage to take the stand our President took for the good of Ugandans. It’s common knowledge that some actors get compromised or suffer from inferiority complexes when dealing with multinational companies, but our President stood his ground for the common good.

The importance of expressing gratitude to our President cannot be overstated. Public appreciation can brighten someone’s day, or even change a life. Thanking someone, especially for selfless service, is a form of prayer and a submission to divine values.

In simple terms, President Museveni’s insistence that telecoms list on the stock exchange was a move to localize companies that have over 90% foreign ownership. Without such a directive, these companies would continue to repatriate vast profits, leading to capital flight.

Instead, insisting that Ugandans get a stake in these companies is a progressive step toward securing our nation’s future. It creates shared value and broad-based ownership of businesses previously dominated by foreign interests.

Our stock exchange, regulated by the Capital Markets Authority (CMA), plays a crucial role in wealth creation by facilitating capital formation, enabling investment, and promoting economic growth. It provides a platform for companies to raise capital by selling shares.

In doing so, stock exchanges indirectly empower citizens to benefit from dividends. In the case of the Airtel-NSSF deal, the UGX 50 billion payout will be critical in determining the percentage of profits NSSF can give to its savers, further expanding our transformation from a subsistence economy to a modern, prosperous one.

According to CMA, domestic market capitalization increased by 8.3%, from UGX 10.7 trillion in June 2024 to UGX 11.6 trillion, signaling positive market dynamics.

In conclusion, we sincerely appreciate the Fountain of Honour, President Museveni, for tirelessly lobbying for Ugandans and for his hard work and commitment to uplifting African lives. They say the greatest humiliation in life is working hard at something you expect to be appreciated for, only to be ignored.

Had it not been for President Museveni’s astuteness in demanding Ugandan shareholding in multilateral telecom firms, we might never have tasted the benefits of this profit bonanza. Long live President Yoweri Museveni. Long live Uganda.

The writer is Head of Research, Office of the National Chairman – Kyambogo.