GSMA: Digital Inclusion Could Transform Uganda’s Economy, Creating 1.79 Million Jobs by 2030 – TechAfrica News

Report on Uganda’s Digital Transformation and its Alignment with Sustainable Development Goals

Executive Summary

A recent GSMA report, “Driving Digital Transformation of the Economy in Uganda,” outlines a strategic pathway for Uganda to leverage its digital economy to achieve significant progress towards the Sustainable Development Goals (SDGs) by 2030. The report indicates that targeted policy reforms can unlock substantial economic and social benefits, directly contributing to goals related to poverty reduction, quality education, decent work, and resilient infrastructure. With collaborative action between the government and industry, Uganda could connect an additional 4 million citizens, create 1.79 million new jobs, and generate UGX 14.6 trillion in economic value, aligning the nation’s Digital Uganda Vision 2040 with the global 2030 Agenda for Sustainable Development.

Current State of Uganda’s Digital Economy and Contribution to SDGs

Economic Impact and Progress towards SDG 8

Uganda’s Information and Communication Technology (ICT) sector is a significant driver of economic growth and employment, directly supporting SDG 8 (Decent Work and Economic Growth). Current contributions include:

• 9% of the national Gross Domestic Product (GDP).
• Employment for over 2.3 million Ugandans.
• An annual expansion rate of 14.8%.

Infrastructure and the Digital Divide: A Challenge to SDG 9 and SDG 10

While Uganda has made strides in building digital infrastructure in line with SDG 9 (Industry, Innovation, and Infrastructure), a significant usage gap persists, hindering progress on SDG 10 (Reduced Inequalities). Key statistics include:

• 96% of the population has 4G coverage.
• Only 22% of the total population (11.46 million users) utilizes mobile internet.
• Three in four Ugandans living within mobile broadband coverage areas do not use it.

This gap is driven by several barriers that impede inclusive digital participation:

• High cost of entry-level smartphones.
• Unreliable energy supply, affecting consistent access and challenging SDG 7 (Affordable and Clean Energy).
• Sector-specific taxes that impact affordability.
• Limited digital skills, a barrier to achieving SDG 4 (Quality Education).

Strategic Policy Reforms to Accelerate SDG Achievement

The report proposes a people-centric policy framework centered on five priority reforms. These reforms are designed to create a conducive environment for investment, innovation, and skills development, thereby accelerating progress across multiple SDGs.

Five Priority Areas for Policy Action

1. Create a Stable Investment Environment: To advance SDG 9, this involves amending telecom license obligations to a 20-year term, reviewing signal strength measures, and designating telecom infrastructure as Critical National Infrastructure to ensure its security and operational reliability.
2. Optimize Taxation for Digital Inclusion: To promote SDG 10, the report recommends removing the 12% excise duty on data services, creating tax parity for mobile money transactions, and exempting advanced telecom equipment from VAT to lower the cost of access for all citizens.
3. Implement Demand-Side Reforms for Affordability and Skills: To support SDG 1 (No Poverty) and SDG 4, this includes eliminating taxes on entry-level smartphones to make devices more accessible and fast-tracking the national Digital Skills Framework to equip citizens for the digital economy.
4. Strengthen Energy and Infrastructure Coordination: Addressing SDG 7 and SDG 9 requires implementing a joint ICT-Energy master plan to ensure a reliable power supply for digital infrastructure, including the promotion of renewable energy solutions.
5. Modernise Regulation for the Digital Age: To foster innovation under SDG 9, Uganda should update its regulatory framework to include a National AI Strategy and modern policies on cloud computing, data localization, and cross-border data transfers.

Projected Outcomes: Quantifying the Impact on Sustainable Development by 2030

The implementation of these reforms is projected to yield substantial returns, directly contributing to the achievement of Uganda’s National Development Plan IV and the SDGs.

Economic and Social Advancement

• Connectivity and Inclusion (SDG 9, SDG 10): An additional 4 million Ugandans will be connected to the internet, raising the total to 19 million users and reducing the digital usage gap by 7%.
• Decent Work and Economic Growth (SDG 8, SDG 1): The creation of 1.79 million new jobs and the addition of UGX 14.6 trillion in economic value will drive poverty reduction and foster inclusive growth.
• Infrastructure Expansion (SDG 9): 4G population coverage would expand from 96% to 99% with a significantly reduced investment requirement.
• Sustainable Fiscal Gains (SDG 17): Increased digitalization is projected to generate UGX 3.1 trillion in additional tax revenue, far outweighing losses from tax reductions and providing resources for reinvestment in national priorities and partnerships for the goals.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
   • The article heavily focuses on the economic impact of the ICT industry in Uganda. It states that the industry contributes 9% to the national GDP, employs over 2.3 million people, and has the potential to create 1.79 million new jobs and add UGX 14.6 trillion in economic value by 2030. This directly relates to promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. SDG 9: Industry, Innovation and Infrastructure
   • The central theme of the article is digital transformation, which is built upon resilient infrastructure and innovation. It discusses the mobile sector as the “digital backbone” for growth, mentions the 96% 4G population coverage, and calls for designating telecom infrastructure as “Critical National Infrastructure.” The goal of connecting 4 million more citizens to the internet is a core aspect of building inclusive and sustainable industrialization and fostering innovation.
3. SDG 10: Reduced Inequalities
   • The article highlights the “usage gap,” where three in four Ugandans within mobile broadband coverage do not use it due to barriers like cost and limited digital skills. The proposed reforms aim to increase digital affordability and inclusion, ensuring “every Ugandan benefits from the digital economy.” This directly addresses the goal of reducing inequality within and among countries by promoting the social and economic inclusion of all.
4. SDG 4: Quality Education
   • The article identifies “limited digital skills” as a major barrier to internet adoption. It calls for fast-tracking the “Digital Skills Framework” to overcome this challenge. Furthermore, it notes that the mobile sector connects people to education, linking digital access to learning opportunities. This aligns with ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all, particularly in acquiring relevant technical skills.
5. SDG 17: Partnerships for the Goals
   • The report explicitly calls for a “renewed partnership between government, industry and development partners” to achieve Uganda’s digital transformation goals. This collaborative approach is the essence of SDG 17, which aims to strengthen the means of implementation and revitalize the global partnership for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article supports this by highlighting the ICT industry’s 14.8% annual expansion rate and its role in driving growth across sectors like agriculture, tourism, and manufacturing.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, and entrepreneurship. The potential to create “1.79 million new jobs” and the mention of creating “new opportunities for entrepreneurs” directly align with this target.
2. Under SDG 9 (Industry, Innovation and Infrastructure):
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all. The article’s focus on expanding 4G coverage, ensuring reliable energy supply for infrastructure, and making access affordable addresses this target.
   • Target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet. The core goal of connecting an “additional 4 million Ugandans to the internet” and reducing the usage gap is a direct reflection of this target.
3. Under SDG 10 (Reduced Inequalities):
   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all. The article’s call for reforms to ensure “every Ugandan can connect, participate, and prosper in the country’s digital future” and its focus on overcoming barriers for underserved populations directly support this target.
4. Under SDG 4 (Quality Education):
   • Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The recommendation to “fast track the Digital Skills Framework” to address “limited digital skills” is a clear link to this target.
5. Under SDG 17 (Partnerships for the Goals):
   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The article’s call for a “renewed partnership between government, industry and development partners” is a direct embodiment of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 8 Targets:
   • Contribution of ICT to GDP: The article states the ICT industry currently contributes “9% to national GDP.” This can be used as a baseline indicator.
   • Job Creation: The article mentions the ICT sector “employs over 2.3 million Ugandans” and has the potential to create “1.79 million new jobs.” These numbers serve as direct indicators of employment.
   • Economic Value Added: The projection of adding “UGX 14.6 trillion in economic value” is a key indicator for economic growth.
2. For SDG 9 Targets:
   • Proportion of population covered by a mobile network: The article provides a specific figure of “96% 4G population coverage,” which can be tracked towards the goal of 99%.
   • Proportion of individuals using the Internet: The article states that “11.46 million unique mobile internet users, equivalent to 22% of the total population” are currently connected. The goal to connect “4 million more Ugandans” provides a clear metric for progress.
3. For SDG 10 Targets:
   • The Digital Usage Gap: The article defines this gap as “three in four Ugandans who live within mobile broadband coverage still do not use it.” The specific goal to “reduce the usage gap by 7%” is a measurable indicator of progress in reducing digital inequality.
4. For SDG 4 Targets:
   • Implementation of Skills Frameworks: While not a quantitative number, the call to “fast track the Digital Skills Framework” implies that the development and implementation of this framework is a key indicator of progress in improving digital literacy.
5. For SDG 17 Targets:
   • The article itself, being a GSMA report presented at a summit, is an indicator of an active partnership. The implementation of the proposed “five priority reforms” would be a measure of the effectiveness of the partnership between government and industry.

4. Summary Table of SDGs, Targets, and Indicators

Source: techafricanews.com