Uganda risks leaving millions offline unless urgent steps are taken to make smartphones and data more affordable, according to a new report launched at the first Digital Africa Summit in Kampala.
The GSMA Africa report, titled “Unlocking the Social and Economic Impact of Technology in the Uganda Economy”, revealed that while 96% of Ugandans now have access to 3G or 4G networks, 74% have never gone online.
“Uganda has closed the 4G coverage gap from 50% to 3% that is commendable,” said Angela Wamola, GSMA Africa Head. “However, 96% of the population has access to broadband, yet 74% remain offline. That is a big lost opportunity.”
The report identifies smartphone affordability and digital literacy as major barriers.
Wamola said a low-end smartphone costs around $38–$40, which equals 39% of GDP per capita, and up to 96% for the poorest Ugandans.
She urged the removal of taxes on entry-level devices to unlock access for millions.
“If we can focus on smartphones at $40 and below, we can unlock that barrier of access and bring the remaining percentage of our population online,” Wamola said.
Nyombi Thembo, Executive Director of the Uganda Communications Commission (UCC), emphasized that connectivity alone is insufficient to drive digital adoption in Uganda.
“It’s one thing to have connectivity, another to use that capacity. Without appropriate devices in consumers’ hands, you are missing a point,” he said.
He noted that simply expanding network coverage does not guarantee meaningful usage, and that devices and relevant content are crucial for uptake.
“When you suffocate operators with restrictive frameworks, you suffocate innovation and destroy the ecosystem.”
Thembo stressed the need for regulatory frameworks that enable, rather than constrain, the private sector, warning that overly strict rules could stifle investment and technological growth.
“Affordability is a key issue. Government is aware of these issues, and with initiatives taking money to the grassroots, we can intersect affordability with access sooner than expected.”
He highlighted ongoing government efforts to make digital services more accessible to the population, particularly by lowering costs and supporting income-generating initiatives that empower citizens to afford devices and data
The report also recommends prioritizing population-based broadband coverage over geographic coverage, arguing that it is more cost-effective. Reaching 99% population coverage could require $15 million, compared to $500 million for 90% geographic coverage.
State Minister for ICT, Godfrey Baluku Kabbyanga, said the government will use the findings to shape laws and policies supporting digital transformation.
“Our vision is a Uganda where digital transformation is a lived reality. Government provides the framework, and the ingenuity of our people and business provides the momentum,” Baluku said.
“We are committed to building an environment where innovation thrives, investment grows, and every citizen benefits from the digital economy.”
Caroline Mbugua, GSMA Senior Director of Public Policy and Communications, stressed the importance of reducing taxation and extending licence durations to encourage investment, while addressing the energy gap for telecom sites, over 90% of which are more than 1km from the national grid.
The Digital Africa Summit, hosted at the Sheraton Kampala Hotel, brought together government, regulators, and industry leaders to discuss digital transformation, infrastructure, policy, and economic growth.
The summit highlighted the mobile sector as a key driver of Uganda’s digital future.
