GSMA Report shows digital policy reforms could add UGX 14.6 trillion to Uganda’s GDP by 2030

By:  Nana Appiah Acquaye

A new GSMA report released at the GSMA Digital Africa Summit Uganda indicates that Uganda could unlock UGX 14.6 trillion in additional economic value, connect four million more citizens to the internet and create 1.79 million new jobs by 2030 if targeted digital policy reforms are implemented.

The report, titled “Driving Digital Transformation of the Economy in Uganda – Opportunities, Policy Reforms and the Role of Mobile,” outlines key reforms required to accelerate national digital inclusion and support aspirations outlined in the National Development Plan IV and Digital Uganda Vision 2040.

GSMA notes that Uganda’s ICT sector currently contributes 9 percent to GDP, employs 2.3 million citizens, and continues to expand at 14.8 percent annually. Mobile connectivity is central to this growth, with 96 percent 4G population coverage and 11.46 million unique mobile internet users recorded nationwide. However, three out of four Ugandans covered by mobile broadband remain unconnected due to affordability, taxation, energy challenges and limited digital skills.

The GSMA model estimates that reforms to reduce sector taxation, eliminate smartphone entry barriers, strengthen infrastructure coordination, ensure predictable policy, and modernize digital regulation could significantly narrow this usage gap and boost national productivity.

If implemented, the report states that Uganda could extend 4G coverage to 99 percent, raise total internet users to 19 million, reduce usage gaps by seven percent, and generate UGX 2.1 trillion in additional tax revenue. Increased digital usage across all sectors could also generate UGX 3.1 trillion in additional tax contributions despite short-term reductions from lowering mobile sector taxation.

Angela Wamola, Head of Africa at GSMA, said Uganda’s digital transformation must focus on people and inclusion, stressing that affordability and predictable policy will determine whether digital development benefits all segments of society.