Overview
Private companies play a lead role in developing Uganda’s ICT infrastructure and digital economy, often in partnership with the government. ICT is identified as a pillar for growth under its ambitious ten year, ten-fold growth strategy starting in 2025. The National Information Technology Authority-Uganda, the Ugandan government’s technology development agency, has laid over 4,000 km (2,485 miles) of fiber optic cable around the country to connect the second tier of administrative units (sub-counties) within each district. Private sector entities laid over 7,800 km of fiber optic cables. These investments reduced the cost of internet connectivity. From 2017 to July 2025, the cost of commercial internet (25 Mbps+/mo) service dropped from an average of approximately $300 to $25. This provides an opportunity for the development of autonomous systems and robotics for agriculture and logistics; the scaling of fintech solutions to build on Uganda’s mobile money success; and the leveraging of data centers for precision medicine and biotech innovation. However, Uganda imposes 12% excise duty on each internet data service purchase, deducted when a purchase is made. In May 2021, Raxio, a company owned by U.S. investors, opened its $15 million tier III data center – Uganda’s first tier III center – in the Kampala Industrial and Business Park. Despite the rapid growth of the ICT sector, Facebook remains banned in Uganda since the January 2021 elections.
Leading Sub-sectors
Data Centers and Content Delivery Nodes: Growth in Uganda’s internet availability has pushed up demand for local data services, data security, and streamlined content delivery, including tier-rated data centers (currently only one Tier-III data center exists in Uganda), content partnerships, and data security expertise.
Complementary Technologies: Due to increased internet access in all regions throughout Uganda, the use of complementary technologies is growing. This includes the use of “Internet of Things” devices and services, artificial intelligence, and industrial internet-connected devices. Internet-connected devices and services supporting the agriculture sector have particularly significant growth potential in Uganda.
Opportunities
Exporting telecommunication hardware may offer the best prospects within the sector. The following products are in high demand in Uganda: cellular and wireless telephone systems, data transmission equipment, fiber optic equipment, trunked mobile phone systems, switches and routers, wireless access equipment, construction of ICT/BPO park, voice over internet telephone, VSAT, computers, and peripherals.