This new telecoms company is disrupting the market in Uganda
Over the weekend, Uganda's President Yoweri Museveni opposed plans by some of his cabinet ministers of Uganda relating to Kenya's banning of some Ugandan goods for allegedly being substandard, in the same week a new telecommunications company has entered the Ugandan market. Analyst, Charles Bwogi joins CNBC Africa for more.
Mon, 27 Jan 2020 15:00:17 GMT
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AI Generated Summary
- The entry of a new telecom company in Uganda's competitive market presents challenges due to the dominance of established players like MTN and Airtel.
- The new entrant is focusing on data services and cost efficiency to differentiate itself in a crowded market.
- Recent tensions between Uganda and Kenya over milk exports highlight the complexities of regional trade dynamics and competition in East Africa.
Uganda's telecommunications sector has long been known for its vibrancy and competitiveness, with major players like MTN and Airtel dominating the market. However, a new player has recently entered the scene, promising to shake things up with a focus on data services and cost efficiency. In a recent interview on CNBC Africa, analyst Charles Bwogi shed light on the challenges and opportunities facing this new entrant and the broader telecom market in Uganda. The interview also touched on the recent tensions between Uganda and Kenya over milk exports, highlighting the complex dynamics at play in the region's business landscape.Over the weekend, a significant development occurred in Uganda's dairy industry, as 19 trucks carrying milk were sent back to Kampala from Kenya. This move came amidst rising tensions between the two countries over allegations of substandard products and unfair competition. Charles Bwogi explained that Uganda produces a vast amount of milk, much of which cannot be consumed domestically due to limited processing capabilities. As a result, Uganda has traditionally relied on the Kenyan market to sell its milk products, taking advantage of lower production costs compared to its regional peers. This competitive advantage has led to friction between the two countries, with Kenyan authorities claiming that Ugandan dairy products are undercutting local prices. While the allegations of substandard products remain under investigation, the situation underscores the complexities of cross-border trade and regional competition in East Africa.
