Regulatory framework
Uganda Communications Act Cap 106 Laws of Uganda has the main objective of regulating the sector with the aim of increasing the availability of the services in the sector to the population and at the same time encouraging private sector investment. Uganda Communication Commission is the body responsible for regulating the sector. ICT legal and regulatory framework is revolving around Telecommunications, Postal and Broadcasting services.
Key players
The key players include the following;
MTN Uganda.
Airtel Uganda.
Uganda Telecom.
Africell Uganda.
Smile Telecom.
K2 Telecom.
Smart Telecom.
Vodafone Uganda.
The mobile phones customer base stands at over 19.5 million.
Sector performance
It is estimated that Ugandan ICT market is growing at accumulative annual growth rate of above 25%. The services in the sector are mainly from the ICT training, website development and custom software development. Other steady markets are NGO and non- for- profit sector. The international donor agencies are a major source of work for ICT industry.
Key products and services in the sector
Services
There are a number of companies that deal in technology solutions, ICT human resources outsourcing, ICT training solutions, Infrastructure, soft and hard ware solutions, enterprise solutions support and business management solutions
Products
The products are many and include the following among others;
- Hotel reservation system
- Centralized procurement system
- A real estate management and maintenance system
- Blue tooth social network tool
- Asset management system
- Payroll system
Uganda’s Information and Communication Technology (ICT) sector is one of the most vibrant and fastest growing sectors since its liberalization in 2010.
According to the FY16 Budget Speech, ICT sector contributed 2.5% of GDP in 2015. In 2015 internet users increased by 53% from 8.5 million in 2013 to 13 million in 2015.
The government registered a number of achievements in the FY 2016. The second phase of the National Backborne Infrastructure has been completed and the governement has connected 72 of its agencies to e-governement with a view of improving efficiency in delivery of work.
The national Information Technology Authority Uganda (NITA-U) is implementing the National Data Transmission Backborne Infrastructure and e-Governemnt Infrastructure Project (NBI/EGI). The major aims are to connnect all major towns within the country onto an Optical Fibre Cable based Network and to connect Ministries and Government departments onto the e-governemnt network
In line with government’s policy of achieving middle income status by 2020, structures to support ICT development have been put in place. Two ICT parks are to be set up, one at Namanve and another one in Entebbe. Work on the Entebbe Park is to commence in the FY 2017.
Sector Contributions to the National Development Plan
The sector contributes to the NDP objective of socio-economic transformation of Uganda’s economy through the use of Information and Communications Technology.
Strategies and Interventions include:
- Enhanced access to quality, affordable, and equitable ICT services country wide
- Investment in infrastructure and services for improved access to quality ICT services,
- Building competent human resource capacity in the sector, and
- Develop and implement a policy, legal and regulatory framework for systematic services country wide.
Medium Term Sector Policy Objectives
- To increase geographical coverage and tele-density of telecommunications services with a high quality of service;
- To have in place a balanced and coordinated national and regional communications infrastructure;
- To promote equitable access to affordable and innovative communication services with specific emphasis on rural areas;
- To establish and enforce a regulatory framework that promotes the development of the sector;
- To provide affordable and accessible postal services countrywide;
- To provide high quality broadcasting infrastructure countrywide;
- To promote use of information technologies in all spheres of life to enhance efficiency and effectiveness;
- To provide high quality market-driven and sustainable training, research and consultancy services that support the ICT sector
Sector Performance
The status of the sector in terms of its three priority sector outcomes is set out below:
Improved service delivery through ICTs
Telephone subscriptions stands at 19.5 million by June 2014, representing a tele-density of 53.3 lines per 100 people. Number of active internet subscriptions stands at 4.3 million by June 2014 compared to 3.4 million by December 2013. The number of internet users stands at 8.5 million as of June 2014 compared to 6.8 million in June 2013.
There is improved access and utilization of quality and affordable ICT resources and services in all spheres of life. The number of licensed TV stations is 67 with 62 operational. There are 229 licensed FM radio stations, out of which 208 are operational. The volume of Expedited Mail Services (EMS) courier items stood at 181,000 and ordinary mail was 881,000 (June 2014). The Number of registered Mobile money subscribers was 17.64 million June 2014 up from 12.12 million in June 2013. The value of transactions increased to 18.645 trillion as at December 2013 compared to 11.6 trillion in December 2012.
Improved contribution of ICT to employment, income and growth
The sector’s contribution to economic growth in terms of share of GDP stands at 2%, Employment in the ICT sector was estimated at over 1.3 million people by December, 2014. Revenue collection (VAT, PAYE and exercise duty) from telecom companies increased by 25% from Ushs.332 Bn in December 2013 to UGX. 416.7Bn in December 2014.
Sector Investment Plans
The major capital investment in the sector is implementation of Phase III of the National Broadband Infrastructure project estimated to cost Shs 2Bn and its part of the approved EXIM Bank loan of USD 106m obtained from China.
Key Strength in ICT
- Geographical location enhances supply to regional markets in East and Central Africa
- Time zone favours business process outsourcing
- Latent market potential, over 52 % of Uganda has access to phones and much less percentage has radio and computers
- Liberalized and well regulated ICT market
- Low costs of operational licenses
- High production rates of skilled labour force with good training background
- Fluent English speaking population
- Good quality infrastructure supportive of future investments
- Young population stable for ICT
Investment opportunities
- Broadband services
- Business process outsourcing services.
- Computer and related equipment hardware assembly
- High level ICT training facilities on international standards.
- ICT business services incubation.
- Hardware repair training facilities.
- Software development niches.
The ICT and Telecom sector profile has been summarised to include the following
Communication Network in Uganda