Facebook has confirmed its commitment to Uganda as a row rumbles on over a recently imposed tax on social media use in the East African country. "Facebook is committed to Africa and our current connectivity work in Uganda," a spokesperson for the social media giant told CNBC via email Wednesday. "We continue to maintain open and active lines of communication with the Ugandan government, the private sector and members of civil society." It was reported this week that Facebook was withholding intended investment in Uganda after a user levy on social media was introduced in the country earlier this year. The state-run Ugandan Communications Commission later tweeted that the news was fake. But, the body did acknowledge that it had met with Facebook and that "issues of taxation were discussed at some point." Facebook told CNBC that the comment from one of its officials that led to the original story was taken out of context.

Musician turned politician Robert Kyagulanyi (C) is joined by other activists in the Ugandan capital of Kampala on July 11, 2018, during a demonstration to protest against a tax on social media use. Sumy Sadurni | AFP | Getty Images

The Ugandan government imposed a user tax on social media access on July 1. Citizens pay 200 Ugandan shillings per day (5 cents) to access Facebook, Snapchat, Twitter, WhatsApp and YouTube — among others — that are classified as over the top (OTT) services. Payment is made via telecommunications firms' mobile payment services. Some Ugandan users have been using Virtual Private Networks (VPNs) to get around the tax. Uganda's government has said that it has implemented the tax to fund public services, although critics consider the move oppressive and aims to stifle political dissent. Violent protests ensued following the tax's introduction, and the government has said that the tax is being reviewed.

Social media for the 'malicious'

Ugandan President Yoweri Museveni has repeatedly employed biting rhetoric against social media use. He is reported to have initially described the tax as one aimed at curbing "olugambo," a local word for "gossip." "Social media chatting is a luxury by those who are enjoying themselves or those who are malicious," he wrote in a statement dated July 4. Social media use is depriving Uganda of U.S. dollars, he added. Users are "endlessly donating money to foreign telephone companies through chatting or even lying" and are "allergic to even a modest contribution to their country whose collective wealth they are misusing," he said. Uganda's two biggest telecom firms are owned by South Africa's MTN Group and India's Bharti Airtel, Reuters reported.

Ugandan police officers are seen lifting their AK-47 rifles opposite protesters during a demonstration on July 11, 2018, in the capital Kampala. The protest is against a controverial tax on social media. Isaac Kasamani | AFP | Getty Images

The country "struggles with domestic revenue collection as a result of a combination of generous tax incentives for foreign companies, high levels of tax evasion, and a large informal and untaxed sector," Patricia Rodrigues, East Africa analyst at consultancy Control Risks, told CNBC via email. According to the World Bank in May, the shortcomings of Uganda's tax system result in up to 40 percent of revenue being lost.

Facebook in Africa

Facebook, working with local partners, has recently completed a 770 kilometer fiber build in northwest Uganda to provide more than 3 million Ugandans with connectivity infrastructure. The social network says that this could also lead to cross-border connectivity to neighboring countries. The social network operates its Free Basics program in 26 African countries including the continent's two major economies, Nigeria and South Africa. Free Basics offers a skeleton of popular internet services to users in less economically developed countries. Facebook owns social media platforms Instagram and WhatsApp, among others.

Ugandan President Yoweri Museveni delivers his state of the nation address in Kampala, Uganda, on June 6, 2018. Nicholas Bamulanzeki | AFP | Getty Images