Uganda has emerged among Africa’s top performers in digital connectivity, with 96% 4G population coverage, placing it ahead of most countries in the region, according to a new report by the Global System for Mobile Communications Association (GSMA).
The 2025 report, themed “Driving Digital Transformation of the Economy in Uganda,” credits sustained investment by mobile operators and forward-looking government policies for making Uganda one of the continent’s leaders in mobile broadband infrastructure.
But it also warns that progress remains uneven, as most Ugandans remain offline despite near-universal network coverage.
The GSMA found that only 22% of Ugandans actively use mobile internet, even though coverage reaches 96% of the population. This leaves a usage gap of 75%, meaning three out of four people with access to broadband still do not go online.
The report cites high smartphone prices, digital illiteracy, and sector taxation among the barriers keeping millions disconnected.
An entry-level smartphone in Uganda costs $38.91 (about Sh150,000), which is equivalent to 39% of the monthly GDP per capita and almost 96% for the poorest 40% of citizens. Taxes make up 35% of that cost, placing basic digital access out of reach for many.
If Uganda implements the report’s proposed reforms, GSMA estimates that the country could gain Sh14.6 trillion in additional economic value by 2030, create 1.79 million new jobs, and generate an extra Sh2.1 trillion in tax revenue through accelerated digital transformation.
A quarter-century of progress
Uganda’s digital journey has been long but steady. George William Nyombi Thembo, the Executive Director of the Uganda Communications Commission (UCC), said the country’s progress over the last 25 years has been “nothing short of a revolution.”
“In Uganda, getting connected was a nightmare 25 years back. As we talk today, we have more than 40 million active subscribers on our networks,” Nyombi said. “Every parish in this country has at least one point where you can stand, even on an anthill, to make a call. That is enormous progress.”
While speaking at the digital summit on Monday at the Sheraton Hotel, Kampala, he credited this achievement to private-sector investment, with UCC shifting its role from policing to enabling growth.
“We have moved away from prescriptive regulation to facilitative regulation,” he said. “Our work is to ensure that licensing regimes allow the private sector to take connectivity to the remotest corners of the country.”
Still, Nyombi emphasised that the country’s next challenge is not connectivity, but usage. “It’s one thing to have coverage, another to use that capacity. We must focus on strong signals, relevant content, digital literacy, affordable devices, and innovation. Over-regulation or high taxes can easily suffocate progress.”
ICT’s growing economic weight
The GSMA notes that Uganda’s information and communication technology (ICT) sector is growing at an average annual rate of 14.8% and contributes 9% to the national GDP, employing about 2.3 million people.
Government funding for digitalisation has also risen. In the 2025/2026 national budget, the Ministry of Finance allocated Sh381.75 billion to ICT and digitalisation, a 55% increase from the previous year. This aligns with the National Development Plan IV (NDP IV) and the Digital Uganda Vision 2040, which position technology as a core driver of inclusive growth and efficient service delivery.
However, affordability remains a major stumbling block. The GSMA recommends that Uganda remove import duties on entry-level smartphones, scrap the 12% excise duty on internet data, align the 0.5% levy on mobile-money withdrawals, and exempt 4G and 5G network equipment from the 18 % VAT on imported software and services.
Bridging the affordability gap
Godfrey Kabyanga, the Minister of State for Information, said the government is working to address both infrastructure and affordability challenges through the Digital Transformation Roadmap.
“We are ensuring that infrastructure reaches every corner of the country. There is now a network everywhere, so people can access services,” Kabyanga said.
He acknowledged that affordability remains a major hurdle: “We are looking at how to make gadgets affordable. It’s a debate across East and Central Africa, and UCC has advised on tax reduction. We are exploring manufacturing some devices locally.”
Kabyanga said the government is also considering social and economic interventions such as the Parish Development Model (PDM) to improve household incomes and increase purchasing power.
“People must first earn before they can afford better gadgets. Many still use 2G phones, but our goal is for everyone to upgrade to 3G or 4G and access digital services,” he said.
He also revealed that a national task force on artificial intelligence (AI) has been established to guide the country’s approach to emerging technologies. “AI is exciting but also comes with challenges. The task force will help us build a regulatory framework to manage its opportunities and risks,” he said.
Expanding the backbone
Uganda’s digital backbone has expanded significantly over the past five years. The GSMA report shows that the country now has 56,486 kilometres of fibre-optic cable, up from 12,369 kilometres in 2020, yet only 29% of the population lives within 10 kilometres of a fibre node.
Under Phase V of the National Backbone Infrastructure (NBI), launched in December 2024, the government plans to extend fibre by 5,845 kilometres across 63 new districts, connecting 2,800 additional public institutions, including schools, hospitals, and community centres, and providing Wi-Fi to over 1,700 sites.
Private-sector players have also expanded their reach. Airtel Uganda operates 10,891 km of fibre, Bayobab (MTN Group) runs 17,000 km, CSquare covers 1,050 km in Greater Kampala, and Savanna Fibre continues to roll out rural networks.
In data storage, Uganda now hosts several modern facilities: MTN Uganda operates six data centres with 972 racks, Airtel Uganda runs two with 327 racks, Raxio Data Centre offers 400 racks, while the National Information Technology Authority (NITA-U) manages the government’s national data facility.
Soumendra Sahu, the Managing Director of Airtel Uganda, said the telecom operator remains committed to expanding access and inclusion.
“We are proud to be part of Uganda’s telecom revolution,” he said. “We continue to localise technologies for Ugandan needs and are investing heavily in renewable energy, digital learning, and financial inclusion.”
Sahu noted that Airtel has partnered with UNICEF to connect 186 schools, reaching 60,000 students and 2,600 teachers, and is collaborating with the World Food Programme to expand mobile-money accessibility and smartphone-financing schemes.
Sylvia Mulinge, the Chief Executive Officer of MTN Uganda, said the private sector recognises its responsibility in ensuring that no Ugandan is left behind in the digital shift.
“If we are to achieve a digital Uganda, we must address affordability and accessibility,” she said. “We look forward to a day when an entry-level 4G smartphone costs about $20 or $30.”
Mulinge stressed that electricity is the backbone of digital growth. “Many people prefer 2G phones because of battery limits and lack of power. As we expand connectivity, we must also address access to reliable energy,” she said.
She added that digital literacy remains a critical gap. “You may have the network and the device, but people must know how to use them. Enabling an entrepreneurial, digitally literate Uganda is key to our future,” she said.
Strong regional standing
On the GSMA Digital Nations and Society Index 2025, Uganda scores 42.04, above Africa’s average of 36, but behind Kenya (58.57), Rwanda (48.49), and Ghana (50.45). Uganda performs strongly in digital government (70.08) but lags in digital business (9.79).
On the Digital Policy and Regulatory Index, Uganda scores 54.47 out of 100, higher than the continental average of 47, though still trailing top performers due to short license durations, restrictive network regulations, and high sector taxes.
The International Telecommunication Union (ITU) also reports a 16% improvement in Uganda’s Global ICT Development Index, rising from 34.8 points in 2023 to 40.4 in 2024, reflecting greater readiness for a digital economy.
Angela Wamola, Head of Africa at GSMA, summed up Uganda’s journey best:
“Uganda’s digital transformation is about people enabling every citizen, entrepreneur, and community to thrive in a connected economy. By making access more affordable and policies more predictable, Uganda can ensure that digital progress delivers for everyone.”