and the number of mobile money transactions during the last quarter of 2020 for the first time ever crossed
the 1 billion transactions mark.
In many African countries however, Uganda included, mobile-data baskets are still out of reach for a large
part of the population, costing more than 10 per cent of Gross National Income per capita, in situations
where incomes are already limited. In terms of affordability of fixed services, Africa is the region with the
highest fixed-broadband basket prices and Uganda is no exception [4].
Figure 3. The use of mobile money (* up to September 2020) [1].
The private sector in Uganda is dominated by about 1.1 million micro, small and medium enterprises
(MSMEs) all together employing approximately 2.5 million people. The Uganda Vision 2040 aspires directly
investing in strategic areas to stimulate the economy and facilitate private sector growth and targets
increasing the growth of MSMEs to drive industrialization. National Development Plan recognizes the need
to support the private sector, particularly local MSMEs, to develop capacity to drive the industrialization
effort, increase exports, create jobs and increase local content. In the strategic ICT sector, SMEs can be
supported through the system of incubation centres to develop their digital and financial literacy, and
through supportive research and innovation facilities established and accessible to MSMEs.
The 2018 After Access Survey shows that Internet use, mobile phone penetration, and the Internet use
divisions between genders as well as urban and rural dwellers are correlated with Gross National Income
(GNI) per capita. Uganda is classified as one of the least developed countries – a list of developing countries
that, according to the UN, possess the lowest indicators of socioeconomic development and the lowest
Human Development Index ratings among all countries in the world. The lack of electricity and
underdeveloped ICT infrastructure are the primary causes of discrepancies in urban–rural Internet use and
mobile phone penetration rates in Uganda. Uganda has a considerable urban–rural gap in Internet use of
70 percent, where only nine percent of Ugandans living in rural areas have access to the Internet and
about a third (30%) of urban area dwellers using it [5].
Several studies demonstrate that broadband penetration and broadband quality are important factors for
economic growth. According to a World Bank study, it is estimated that for every 10% increase in
broadband penetration in low and middle income countries result in a commensurate increase of 1.38% of
the GDP [6]. Studies also reveal the economic impact of broadband deployment directly through jobs
created by deploying broadband infrastructure, and indirectly as a result of ‘spill- over’ externalities, such
as increased productivity and new products and services i.e. through accelerated innovation.
2.3 Cyber Crime
Cybersecurity continues to be a challenge in Uganda and the share of cyber (computer) crimes in total
economic crimes is on the rise. In 2020 the cybercrime report of the Uganda Police acknowledges the
relative increase in cases of cybercrimes related cases and they led to a loss of UGX 15,949,236,000 in
2020. The major categories of cybercrimes were electronic fraud and obtaining money by false pretense.
[7]
12 (43)
[Draft Version for stakeholder consultation]
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