By Andrew Irumba Katusabe
Kampala, Uganda –The Private Sector Foundation Uganda (PSFU), through its ICT Working Group, convened a high-level stakeholders’ meeting at its Nakasero headquarters on Friday to chart the way forward for Uganda’s digital economy. The session, chaired by NFT Consult CEO Badru Ntege, emphasized the urgent need for government intervention to reduce the high cost of internet and digital devices, which the group warned is stifling youth participation in the employment ecosystem.
Mr. Ntege underscored the growing burden of digital exclusion, stating, “We cannot talk about digital transformation and job creation when access to basic tools like affordable internet and devices remains a privilege, not a right.”
The meeting produced a Draft PSFU ICT Sector Matrix that highlights key barriers in the ICT sector, their impacts, responsible government agencies, roles of private sector actors, proposed interventions, and action timelines. The table below captures the core outcomes:
Draft PSFU ICT Sector Matrix
| # | Issue | Impact | Responsible Government Agency | Private Sector Role | Proposed Intervention/Action | Timeline |
|---|---|---|---|---|---|---|
| 1 | High cost of internet and devices | Limits access for SMEs and youth | UCC, MoICT, MoFPED | Telcos, ICT associations, importers | Tax reform on ICT equipment, shared broadband models | Short term |
| 2 | Limited last-mile connectivity | Excludes rural populations and MSMEs | UCC, NITA-U, UEDCL | ISPs, Telecoms, community networks | Expand RCDF programs, incentivize rural investment | Medium term |
| 3 | Skills gap in emerging tech | Unemployable graduates, low productivity | MoES, NITA-U, UBTEB | Tech companies, training firms, hubs | Revamp ICT curricula, foster internships, bootcamps | Medium term |
| 4 | Inadequate access to innovation finance | Stifles start-ups and scale-ups | MoFPED, BOU, UIA, UDC | Private equity, VCs, accelerators | Startup Fund, digital lending frameworks | Medium term |
| 5 | Weak data protection and cyber laws | Limits foreign investment and digital trust | NITA-U, URSB, MoJCA | FinTechs, e-commerce, ISPs | Strengthen enforcement, CERT establishment | Short term |
| 6 | Limited local content & digital products | Dependency on foreign software, missed revenue | NITA-U, UCC | Software developers, TV stations, app builders | Fund local innovation, adopt ‘Buy Uganda Build Uganda’ | Medium term |
| 7 | Lack of coordinated policy enforcement | Duplications, inefficiency, investor confusion | MoICT, OPM, MoFPED | PSFU, ICT Associations | Create a National ICT Implementation Council | Long term |
| 8 | Informal ICT services | Undermines quality, taxes, and reputation | URA, KCCA, Local Govts | MSMEs, Tech repairers, informal traders | Formalization support, digital tax systems | Short term |
| 9 | Limited market access for ICT firms | Restricts export potential and regional expansion | MTIC, MoFA, UEPB | Software exporters, ICT Associations, PSFU | Enhance export programs, regional digital trade support | Medium term |
Accompanying the matrix, the group reviewed ICT Sector Growth (2020–2023) data and identified several challenges and recommendations to guide national strategy:
ICT Sector Growth Chart (2020–2023)
| Year | Mobile Subscriptions (%) | Internet Users (%) |
|---|---|---|
| 2020 | ~52% | ~24% |
| 2021 | ~57% | ~28% |
| 2022 | ~62% | ~34% |
| 2023 | ~67% | ~39% |
Key Challenges Identified
- High cost of internet and broadband infrastructure.
- Limited last-mile connectivity in rural/underserved regions.
- Low digital skills, especially among youth and SMEs.
- Cybersecurity risks, weak enforcement of data protection laws.
- Dependency on foreign content and software.
Key Recommendations
- Subsidize broadband deployment via the Rural Communications Development Fund (RCDF).
- Promote digital skills programs, especially targeting youth.
- Strengthen cyber laws enforcement, and establish a National Cyber Emergency Response Team (CERT).
- Support ICT innovation hubs and prioritize local content production.
Stakeholders called for a public-private partnership model where government policy is directly informed by sector realities, especially as Uganda prepares to implement its digital transformation strategy.
The PSFU ICT Working Group plans to present this proposal to the Ministry of ICT and National Guidance and the Ministry of Finance in upcoming consultative sessions. The final paperwork will be ready Tuesday next week after further consultations and inputs with other stakeholders. The meeting was conducted both physically and virtually since it was about ICT.
