Uganda: Ambitious project to connect all sub-counties to national internet infrastructure
$150 million loan to expand connectivity
The Ugandan government has entered into discussions with China Eximbank for a $150 million loan. The investment aims to connect all sub-counties in the country to the National Infrastructure Backbone (NBI) , a move that is part of improving e-government adoption.
This announcement was made by Chris Baryomunsi , Minister of Information, Communication, Technology and National Orientation, during a parliamentary session on November 26, 2024. According to the minister, this expansion will include local governments, in addition to ministries, government agencies and district headquarters already connected.
The importance of last mile connectivity
The minister stressed that last mile connectivity , i.e. the final segment connecting the national backbone to end users, is crucial to ensure access to e-government in all regions of the country.
“This is essential for all regions to fully benefit from the digital economy,” he explained.
Digital development still limited
According to the United Nations Department of Economic and Social Affairs (UNDESA) 2024 report , Uganda is ranked 150th in the world on the e-Government Development Index (EGDI), with a score of 0.4463 out of 1. This score is above the regional average in Eastern Africa ( 0.3903 ) and Africa ( 0.4247 ), but remains below the world average of 0.6382 .
Underdeveloped telecoms infrastructure is pointed out as a major limiting factor. The International Telecommunication Union (ITU) ranks Uganda 34th out of 47 African countries in ICT development, with a score of 40.4 out of 100 .
Progress and challenges for the digital future
Despite limited infrastructure, DESA notes that Uganda has been able to leverage its human capital to advance in online service delivery. However, significant investments are needed to reach a more advanced level of digital development.
Persistent challenges include:
- Limited access to smartphones and connected devices.
- The high cost of Internet services.
- Low digital literacy rate.
According to the ITU, only 10% of the population uses the internet, although 65% of Ugandans own a mobile phone . As of September 2024, the Uganda Communications Commission counted 17.3 million smartphones in the country.
A promising future for the digital economy
The adoption of e-government is seen by the executive as a lever for efficiency and improvement of public services. A joint study by the International Finance Corporation (IFC) and Google predicts that the digital economy in Africa could reach a value of $712 billion in 2050, representing 8.5% of the continental GDP .
Conclusion
The National Infrastructure Backbone Expansion Project represents a key milestone in Uganda’s digital transformation. While barriers such as cost of services and low access to technology remain, the planned investment could boost the digital economy and bring the country closer to global e-government standards. To realize these ambitions, joint efforts between government, the private sector and international partners will be essential.
