Uganda’s ICT sector has tremendous potential to contribute to the country’s economic growth, social development, and human rights protection. However, despite the significant progress made in recent years, Uganda’s budget allocation for ICT is relatively low compared to other African countries like Rwanda and Kenya.
In the financial year of 2022/2023, the government of Uganda allocated USD33 million towards the ICT sector compared to Kenya (USD 132 million) and Rwanda (USD 38 million)
In 2023, Uganda’s population was 47.91 million people, with only 11.77 million internet users, leaving 75.4% of the population offline. Uganda’s internet penetration rate was 24.6%, with only 4.3% of the population being social media users, indicating the need for increased investment in the ICT sector. This lack of investment has resulted in the slow uptake of digital services and low internet penetration, hindering the enjoyment of digital rights by Ugandans. Additionally, the lack of adequate investment in ICT has resulted in a low level of awareness of digital rights and hence not every Ugandan can access the digital market
In January 2024 the number of internet users had increased to 13.3 million internet users, reflecting a 27.0% penetration rate. From January 2023 to January 2024, the number of internet users grew by 1.2 million, or 10.3%. However, 35.95 million people, or 73.0% of the population, remained offline at the start of the year.
In FY 2024/25, the government provided over Shs246 billion (USD 66 million) to continue developing the ICT and digital transformation through the further expansion of internet connectivity and digital infrastructure across the country; continuing the rollout of digital services across Government to improve efficiency of service delivery, transparency and accountability and leveraging Business Process Outsourcing (BPO) and ICT to create employment opportunities for the young people.
However, Uganda still faces significant challenges in bridging the digital divide and ensuring that each Ugandan enjoys their digital rights and leverages the digital economy. The country has a low number of social media users, representing only 4.3% of the population, and limited internet penetration at 24.6%. Compared to neighbouring countries like Rwanda and Kenya, Uganda’s budget allocation for the ICT sector is relatively low.
The low budget allocation to the ICT sector hinders access to digital services by Ugandan citizens and yet ICT has been determined as a key driver for Uganda’s socio-economic transformation.
This is under the 2040 Digital Vision and National Development Plan 3. This vision aims to leverage the transformation power of ICT to improve the lives of Ugandans, enhance the competitiveness of the economy, and promote good governance.
The Digital Uganda Vision 2019 further marks the government’s commitment to “Transform Uganda into a digitally-enabled society that is innovative, productive and competitive.”
To achieve this vision, Uganda needs to prioritise the development of a robust digital infrastructure, including broadband connectivity, digital literacy, and e-government services. This requires significant investment in ICT infrastructure and human resource development, as well as the creation of an enabling policy and regulatory environment that promotes innovation, competition, digital inclusion and digital rights and more investment in the ICT sector.
“The ICT sector has the potential to further catalyse social economic growth of the Country” says the Ministry of ICT and National Guidance.
Can Increased Investment in ICT Transform Uganda’s Digital Landscape and Drive Economic Growth
The ICT sector plays a key role in enabling Uganda’s socio-economic growth. It continues to grow at an average rate of 14.8% and contributes 9% to Uganda’s Gross Domestic Product (GDP). It also employs about 2.3 million people, highlighting its role as a critical driver of employment and livelihoods.
Increased investment in ICT has the potential to significantly transform Uganda’s digital landscape and drive economic growth. By enhancing digital infrastructure, fostering innovation, and creating new job opportunities, such investment can improve connectivity, boost technological advancements, and support economic development. Furthermore, it can lead to greater digital inclusion and higher productivity, thereby contributing to a more dynamic and prosperous economy.
Efforts to increase digital usage by citizens include the continued development of fiber infrastructure, which is expected to reduce data prices. The government is also focusing on content development, production, and dissemination, with a strong emphasis on digital media.