By outsourcing and innovating business processes, the country aims to increase penetration and access to ICT, one of the fastest growing sectors in Uganda
As any steadily progressive nation aspires to, Uganda is building a reliable and efficient information and communication technology (ICT) sector to keep pace with global digital transformation.
To keep up with these aspirations, business process outsourcing (BPO) and innovation have carved a niche for themselves among the many treasures of this country. In fact, the Uganda Vision 2040 names ICT as one of the most important foundations and as a way to advance the country’s transformation into a modern and prosperous country.
Availability of labor, internet connectivity, affordable access to the internet, digitally assisted environments, well-equipped and innovative ecosystems are the driving forces behind the ICT sector, one of the most competitive and fastest growing sectors in the country. ICT services alone contribute 2.5% to Uganda’s GDP and are growing steadily every year.
The permanent secretary of the Ministry of ICT and National Advice, Dr. Aminah Zawedde, says: “The growth and competitiveness of the sector have attracted global players to explore the Ugandan market and support its innovation ecosystem. There are also a growing number of local companies with remarkable international experience. “
Dr. Aminah goes on to explain that ICT is embedded in most of the country’s future visions and development plans, as well as the United Nations’ call to action, the Sustainable Development Goals (SDG). “The aim of the 2030 Agenda in the context of SDG 9 is to significantly improve access to information and communication technologies and to provide universal and affordable access to the Internet,” she says.
“In addition, SDG 17 aims to improve the use of basic technologies, in particular information and communication technology. Similarly, Agenda 2063 (Goal 10) seeks to double ICT penetration and the contribution to the country’s GDP. In addition, the goal of the East African Community (EAC) Vision 2050 is to build ICT capacities to promote innovation and increase competitiveness.
“The government has embraced ICT as one of the tools to drive the socio-economic transformation of the country to improve the efficiency and effectiveness of the delivery of services to citizens. This is firmly anchored in the National Policy and Planning Frameworks such as the Uganda Vision 2040, the National Development Plan (NDP) III (FY2020 / 21 – FY2024 / 25), the National Resistance Movement (NRM) Manifesto 2021-2026 and the Digital Uganda -Vision (DUV). “
High quality and employability of the workforce
According to the 2018 World Economic Forum’s Global Competitiveness Index, Uganda scores 4.4 on a scale from one to seven (7 excellent) for its ease of finding skilled workers (when looking for talent with digital skills).
Uganda has one of the youngest populations in Africa, with 69% of the population under the age of 24. Every year more than 30,000 young people leave the country’s universities who are fluent and good at reading both English and ICT.
In addition, Uganda ranks in the upper percentile among the African countries that are associated with the digital potential in accordance with business process outsourcing and that are increasing sharply.
Recently, Uganda was ranked 12th in Africa by the United Nations Capital Development Fund (UNCDF), with a score above the regional average in technology and governance. UNCDF noted that the performance of Uganda’s political and regulatory environment, as assessed by the Inclusive Digital Economy Scorecard (IDES), a strategic performance tool, is in line with other global benchmarks.
“As a government, we continue to ensure that all cyber laws and related regulations are efficiently managed to improve businesses and industries, and most importantly, to fuel the growth of the innovation industry.
“Uganda has also set up an ICT assembly factory that supplies low-cost, high-quality cell phones and laptops. This factory produces 1,300,000 devices annually. This enabled our young people to get started in BPO because of the low entry costs, ”adds Dr. Aminah.
Innovation building infrastructure
The country has also achieved a lot in terms of connectivity. Coverage is predominantly via cellular networks – especially mobile platforms. Internet subscriptions in Uganda have surpassed the 20 million mark, suggesting that almost every second Ugandan has Internet access.
Mobile broadband subscriptions rose 1.2 million from 18.9 million at the end of June 2020 to 20.12 million in September and there were 30,486 landline internet subscriptions. There is substantial 4G and 3G coverage across the country.
The government, through the Department of ICT and National Advisory Services, has invested over the years in building secure infrastructure and information systems over the fiber optic cable of the National Backbone Infrastructure (NBI). The ministry has created a high-speed, secure network that connects most of Uganda.
Dr. Aminah says, “So far we’ve built 4,000 km of fiber and over the next three years we plan to connect the entire country with more fiber.”
The NBI and e-Government Infrastructure Project (EGI) provide network connectivity in 53 districts in 1,353 government locations, including offices, schools, hospitals, courts, universities, police and local governments, now able to use high-speed connections and over 333 E. -Government services.
The NBI / EGI has facilitated regional connectivity across 10 border points via Entebbe, Vurra, Oraba, Goli, Mpondwe, Malaba, Busia, Mutukula, Katuna and Elegu, thus promoting trade and cross-border relations. By creating this nationwide network and promoting the development of e-government services, the government through the NBI / EGI has helped make doing business easier across the region
To reduce the barriers to setting up BPO or innovation, the government has cut internet costs. “In this fiscal year 2021/2022, the government will cut costs to $ 25 per 1 Mbit / s of dedicated internet. The government’s goal for BPO / innovation is to buy internet for $ 5 per 1 Mbit / s of dedicated internet, ”said Dr. Aminah.
Well-equipped data centers and digital ecosystems
With the growth of data usage and storage and the wider digital transformation of businesses and the public sector in Uganda, the government has also set up the first tier 3 data center and data recovery facility to support the growth and digitization of the Ugandan economy. The money doesn’t stop there, however. The government plans to build more data centers across the country with regional points of presence to improve the Internet service experience.
“Regulation can be catalytic or a hindrance to innovation. In Uganda we made sure that the regulation we introduced has a catalytic effect. Our laws and regulations are agile, iterative and collaborative, ”says Dr. Aminah.
Innovation hubs connect young entrepreneurs, programmers, designers and investors and facilitate growth and collaboration across the innovation ecosystem. Many hubs in Uganda focus on technical innovation support, such as coworking spaces, product laboratories, hackathons, bootcamps, design sprints and human (user) centered design to support innovators and entrepreneurs in reaching their markets.
“These innovation centers offer a cluster of services from eCommerce to eHealth to Fintech, Artificial Intelligence and Machine Learning – regardless of the technology that is used and applied in Uganda.
“Innovation is an accelerator, amplifier and amplifier of change. It has enormous potential to improve national productivity by making government and commercial enterprises more efficient, more effective and more globally competitive, ”says Dr. Aminah.
“Uganda is open to business – let’s talk. We are sure that we are the right partner for you for every requirement of the technology business. “
