Uganda’s Information and Communications Technology (ICT) sector is dynamic and vibrant. The sector has registered double digit growth since 2000 and grew by 33% in 2006/2007. Investment inflows have been very strong and in 2006, the sector attracted in excess of US $73 million. Direct employment stands at 6000 while over 350,000 people are indirectly employed. Sector dynamism is a result of Uganda’s good ICT legal and regulatory framework, a stable micro economic environment and economic reforms pursued since the early 1990s. The telecommunications sub-sector, formerly dominated by a single national operator, has been progressively liberalised over the last 10 years.
Infrastructure capacity is rapidly improving. Most national and regional transmission links are digital. Optical fiber links connect major economic centres, with expansion in progress. There is extensive use of microwave in the backbone infrastructure and Vast Services. International gateways are satellite based but connection to the world optic fiber network is eminent. Although still small, export of ICT services has started generating foreign exchange inflows. With virtually no earnings in 2001, the sector now earns over US $ 10 million per annum.
Investment Opportunities
A wide range of opportunities are available due to Uganda’s geographical location which favours business process outsourcing and low licensing and entry cost. Other positive factors include a strong market potential across most service areas, a skilled labour force with specialized ICT training, a population that fluently speaks English, low factor costs including land, good quality support infrastructure and a young population suitable for ICT.
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