Figure 1. Mobile and fixed Internet subscriptions in 2020 [2]. However, broadband access in Uganda is largely mobile and rate of fixed broadband penetration is still very low (0.1% of all Internet subscriptions in the 4th quarter of 2020 are fixed). The low fixed broadband access implies that there is little progress in promoting broadband access to anchor institutions like schools, libraries, health centers, and Local Government offices and that a critical mass of institutions and businesses are not using broadband services to be competitive. Figure 2. How the Internet is used? Monthly user traffic profile in 4th quarter of 2020 [2]. In recent years, and in particular during the global pandemic crisis, Uganda has witnessed an increase in malware distribution, business email compromises, the spread of fake news and mobile money network fraud. In early October 2020, Uganda’s telecoms and banking sectors were plunged into crisis due to a major hack that compromised the country’s mobile money network. At least $3.2 million is estimated to have been stolen in that incident, in which hackers used around 2,000 mobile SIM cards to gain access to the mobile money payment system. By the end of 2020, total active mobile money accounts stood at 22.5 million of the 28 million registered accounts. The trend in the mobile money industry and the growth in number of mobile money accepting businesses has been upward for the year 2020. The number of active mobile agents has grown to 235,790 11 (43) [Draft Version for stakeholder consultation]

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