A controversial proposal to route Uganda’s internet traffic through Tanzania is under intense scrutiny, with parliament questioning the cancellation of an open competitive bidding process in favor of a direct deal with a little-known company called Samanga Utilities. The deal, which was pitched directly to President Yoweri Museveni in a June 23 letter, has raised serious concerns about transparency, procurement irregularities, and the true cost to Ugandan taxpayers.
The proposal involves tapping into Tanzania’s high-capacity fibre-optic network at the Mutukula border point to create an alternative internet route. This comes after the Uganda Electricity Transmission Company Limited (UETCL) abruptly cancelled an open bidding process for its fibre network, subsequently pivoting to prepare a new proposal for Samanga Utilities. Lawmakers are now demanding answers about why a competitive process was abandoned and why a single company was given preferential treatment for a project of national importance.
At the center of the controversy are two distinct agreements. A $28.8 million deal was signed between the National Information Technology Authority of Uganda (NITA-U) and the Tanzania Telecommunications Corporation (TTCL) on September 29. However, a separate proposed arrangement, estimated at $4.6 million, has attracted the most scrutiny over its procurement procedures and the ownership structure of the companies involved. The government has failed to provide a clear explanation for how these deals were structured or why the procurement rules were bypassed.
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The push for an alternative route stems from long-standing concerns about Uganda’s over-reliance on Kenya for its internet connectivity. The current route through Kenya creates a risk of internet unavailability for Uganda and South Sudan whenever there is a problem in Kenya. However, experts have previously noted that Tanzania’s costs for using its alternative route were excessively high compared to similar costs across the region, creating a barrier to its use.
The parliamentary inquiry is now focused on the financial management and procurement processes that led to this deal. Questions are swirling over the operability of the proposed infrastructure and whether the companies involved have the technical capacity to deliver on their promises. The lack of transparency has fueled public suspicion that the deal may be more about enriching connected individuals than improving internet access for ordinary Ugandans.
For a government that has repeatedly promised to lower internet costs and improve digital infrastructure, this deal represents a significant setback. Instead of following established procurement laws and ensuring value for money, the government appears to have bypassed competitive bidding in favor of a direct negotiation. The result is a cloud of suspicion hanging over a critical national infrastructure project, leaving citizens to wonder what is really happening behind closed doors.
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