Stakeholders push for lower smartphone taxes to boost Uganda’s digital use
Uganda should cut taxes on affordable mobile phones and prioritize connecting people over expanding geographic network reach, according to technology sector representatives who gathered for the first Digital Africa Summit in Kampala. GSMA Africa released research showing that while 96 percent of Ugandans live within range of 3G or 4G signals, three-quarters have never accessed the internet.
Angela Wamola from GSMA Africa said the country achieved strong infrastructure gains during the past decade but faces a significant challenge converting coverage into actual usage. The lowest-priced smartphones cost between 38 and 40 dollars, representing 39 percent of per capita gross domestic product and 96 percent of what the poorest households earn. Taxes account for 35 percent of device prices. The organization recommends eliminating levies on basic handsets and targeting retail prices from 20 to 30 dollars to expand access. GSMA policy director Caroline Mbugua said raising population coverage from 96 to 99 percent requires only 15 million dollars compared with 500 million needed to achieve 90 percent geographic reach.
Uganda Communications Commission director Nyombi Thembo credited private companies for growing subscriptions from under 50,000 telephone lines 25 years ago to more than 40 million today. State minister for information technology Godfrey Kabyanga said authorities continue reviewing regulations to accelerate adoption.
