Telecom companies are going to be required to keep a mandatory percentage of shares just for Ugandans with the view of holding back shares within the country
Frank Tumwebaze, the ICT and Information minister, said that government will require Telecom companies to assign a percentage of its shares specifically for Ugandans.
“We shall ask from all Telecom companies that a certain percentage of shares is reserved,” he told reporters stressing that the goal is to lessen capital flight, according to Monitor.
Though, Mr Tumwebaze could not state how much will be set aside saying, government will discuss the propositions with guidance from the Capital Markets Authority.
All this happened when he was addressing concerns brought up by the MTN chief executive officer.
While talking to journalists, the executive officer said that listing might not be the best means of localizing Telecom companies since foreign companies could dominate in shareholding.
“Listing is not the best way to gain that objective. Anybody can own shares, some countries that implemented such a move have found out that foreigners have the most shares.” he said.
He, however added that in case this becomes a “must do” they will abide by the new laws.
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