Ugandans Worry about Libyan Funded Companies

Uncertainty continues to build around Libyan interests in Uganda, resurrecting fears that thousands of jobs could be at stake.

Libya has invested over $375m in Uganda's agriculture, hotel, health, infrastructure, construction, food and financial industries, providing jobs for over 3,000 Ugandans directly and indirectly, according to a report from AllAfrica.

Libyan-funded companies in Uganda include Britania, Tropical Bank, Voice of Africa Radio, Laico, Lake Victoria Hotel, National Housing Bank, and Tamoil, which was contracted to run oil reserves in Jinja with a capacity of over 10 million litres.

Tamoil, a subsidiary of the Libyan African Investment Portfolio, won a contract to construct the Eldoret-Kampala pipeline in 2006, but work is yet to commence. The pipeline extension is jointly sponsored by Kenya and Uganda. The countries are threatening to terminate the contract because of Turmoil's inability to commence.

According to the report, Voice of Africa is struggling to stay afloat since it stopped receiving funds from Libya, and many of their staff left because they had not been paid for a long time.

During the Libyan crisis in 2011, Tropical Bank reportedly enjoyed strong support from the Central Bank, key customers, management and staff in reassuring customers, the public and other financial sector players that Tropical Bank was strong.

Uganda Telecommunication Limited (UTL), one of the first telecom companies in Uganda, is 69% owned by Libyan consortium LAP Green Network.

(Source: AllAfrica)

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