Questions Mount Over Uganda-Tanzania Internet Deal as Fibre Network Procurement Faces Scrutiny

KAMPALA, Uganda — Questions are mounting over Uganda's proposed internet connectivity arrangement with Tanzania, with legislators examining how a plan involving private company Samanga Utilities Limited became linked to the commercialisation of the country's strategic fibre-optic infrastructure.

The controversy centres on the Uganda Electricity Transmission Company Limited (UETCL), which has come under scrutiny over its decision to cancel an open bidding process for a commercialisation partner for its fibre-optic network.

The matter was raised before Parliament's Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), where UETCL officials, led by Acting Executive Director Richard Matsiko, were questioned about the procurement process and the subsequent consideration of Samanga Utilities.

Lawmakers sought explanations about why the original competitive process was discontinued and why Samanga emerged as the company being considered for a revised proposal.

How the Tanzania route entered the picture

The proposed arrangement dates back to a presidential directive issued on August 27, 2025.

In a letter to the Ministers of ICT and Energy, President Yoweri Museveni called for an alternative internet route through Tanzania, arguing that Uganda could reduce connectivity costs by relying less on the existing route through Kenya.

The proposal involved connecting fibre infrastructure carried along Tanzania's high-voltage electricity transmission network to Uganda's transmission network.

The Tanzanian government and Samanga Utilities had been associated with the proposal, which was presented as an opportunity to improve connectivity and reduce the cost of internet services.

The project subsequently advanced through consultations involving the Ministry of Energy and Mineral Development, UETCL and Samanga in June 2026.

Why the procurement process is under scrutiny

In a letter dated July 27, 2026, Energy Minister Monica Musenero Masanza directed UETCL to terminate its existing open bidding process for a commercialisation partner for the utility's optical fibre network.

The utility was instead instructed to prepare revised request-for-proposal documents for Samanga Utilities, outlining the proposed engagement and taking into account technical requirements and value for money.

The revised documents were to be submitted to the ministry for concurrence before being issued to the company.

According to an assessment of Samanga's proposal by UETCL, the company had suggested establishing a special-purpose vehicle wholly owned by Samanga to commercialise the fibre network under a concession lasting between 20 and 30 years.

The proposal covered technical operations, network management, maintenance, implementation and staffing.

The shift from an open bidding process to a proposal specifically involving Samanga has become a central issue in the parliamentary scrutiny, particularly over the circumstances surrounding the cancellation and whether the revised arrangement adequately protects public interests.

The bigger question: Who controls strategic infrastructure?

Uganda's fibre-optic network is important to national communications, internet connectivity and the delivery of digital services. Decisions about its commercialisation therefore carry implications for public asset management, competition, security and the long-term cost of connectivity.

An alternative route through Tanzania could also provide Uganda with another international connectivity pathway, reducing reliance on a single corridor and potentially improving network resilience.

However, the expected benefits will depend on the technical design, commercial terms, regulatory safeguards and the way the arrangement is implemented.

The parliamentary scrutiny does not, by itself, establish that wrongdoing has occurred or that Samanga has been awarded a final concession. It does, however, raise questions about the procurement decisions and the safeguards being applied to a strategic national asset.

As Uganda pursues a more diversified and potentially affordable internet infrastructure, the central test will be whether the proposed arrangement delivers measurable public value through transparent procedures and accountable management.

Source DAILY MONITOR