Uganda seeks to reclaim Libya’s stake in housing company

Uganda is seeking to reclaim Libya’s 49% stake in the National Housing and Construction Company as part of plans to return the firm to full state ownership.

Ugandan authorities have begun assessing the company and its shares ahead of a possible acquisition, according to a report cited by officials.

Officials told parliament’s Land and Housing Committee that one of the challenges was identifying the Libyan entity authorised to negotiate the deal.

Libya acquired the stake as part of an agreement to settle debts owed to it by Uganda. Ugandan authorities say the lack of further Libyan investment in recent years has contributed to the company’s financial difficulties.

Government documents estimate that the company needs about 250bn Ugandan shillings a year to finance housing projects.

Libyan investments in Uganda were estimated at about $375m before 2011, spanning telecommunications, banking, housing and hotels.

There has been no official response from Libya to Uganda’s move.