• GSMA urges policy reforms to improve affordability, investment, and coverage
• 75% under mobile coverage don’t use internet due to cost, skills, energy gaps
  

Uganda has the potential to generate 14.6 trillion Ugandan shillings (approximately $4 billion) in additional economic value, create 1.79 million new jobs, and connect 4 million more citizens to the internet by 2030, according to a new report from the GSMA, the global organization for mobile operators. The report was unveiled Monday at the GSMA Digital Africa Summit Uganda in Kampala.

Titled "Driving Digital Transformation of the Economy in Uganda – Opportunities, Policy Reforms and the Role of Mobile," the study emphasizes the transformative impact of the mobile sector on economic growth and digital inclusion, aligning with the country's National Development Plan IV (NDP IV) and the Digital Uganda Vision 2040 ambitions.

Key Driver for Productive Sectors

The Uganda Digital Transformation Roadmap positions the mobile sector, which currently accounts for 9% of the national GDP and employs 2.3 million people, as a cornerstone of the nation’s digital future. It is a critical enabler of productivity in key areas such as agriculture, trade, manufacturing, and services, while simultaneously expanding access to education, health, and digital financial services.

The GSMA estimates that increased digitization could boost agricultural and industrial productivity, lift exports, and enhance the resilience of small businesses. The organization identifies mobile connectivity as the digital backbone necessary to accelerate inclusive growth and bridge the digital divide in Uganda.

Untapped Potential Despite Wide Coverage

Despite 4G coverage reaching 96% of the population and 11.46 million unique mobile internet users (representing 22% of the total population and 48% of adults), three out of four Ugandans living under mobile coverage do not use the internet.

This low adoption rate is attributed to several barriers, including the high cost of entry-level smartphones, erratic energy access, sectoral taxes that undermine affordability, and a lack of digital skills. The GSMA states that removing these obstacles is essential to achieving the NDP IV 2030 targets of 70% national broadband coverage and 45% internet usage by 2029 or 2030.

Policy Reforms Urged for Inclusive Digital Growth

The GSMA report calls for an overhaul of public policies to create an environment more conducive to investment and innovation. Specifically, the organization advocates for greater regulatory stability, a digital-friendly tax system, and a long-term investment framework. It also urges the government to formally recognize telecommunications infrastructure as "essential national infrastructure," improve coordination between the energy and ICT sectors, and make smartphones more affordable.

Modernizing the regulatory landscape is also a priority. The GSMA recommends updating legislation related to artificial intelligence, cloud computing, and data protection to foster a more competitive and secure digital economy.

Path to Shared Prosperity

If these reforms are successfully implemented, the GSMA projects they could extend 4G coverage to 99% of the population, connect 19 million Ugandans to the internet (32% of the total population and 61% of adults), and reduce the broadband usage gap by 7%.

Ultimately, these measures are estimated to generate an additional 2.1 billion UGX in tax revenue, offsetting any losses from reduced sectoral taxes and giving the government more fiscal space to finance national priorities.

"Uganda's digital transformation is fundamentally about its citizens, entrepreneurs, and communities," said Angela Wamola, Head of Africa for the GSMA. "By making access more affordable and policies more predictable, Uganda can ensure that digital progress benefits everyone."

The GSMA concluded by urging enhanced cooperation among the government, the private sector, and development partners to consolidate existing gains and enable Uganda to reach a new phase in its digital transformation.

Samira Njoya