Uganda is no longer debating whether digital transformation matters.
Millions of Ugandans already use digital platforms to trade, save, learn, communicate and access services every day.
The real question is whether we can turn this momentum into broad-based economic value that benefits households, businesses and communities across the country.
The FY2026/27 national budget sends a strong signal that Government recognises this opportunity.
The allocation of Shs 1.14 trillion to Science, Technology and Innovation, ICT and the creative industries, up from about Shs 962 billion last year, reflects growing recognition that technology is no longer just an enabler of development.
It is now central to productivity, competitiveness, service delivery and long-term economic growth.
This shift has been gradual but deliberate.
Three years ago, the focus was on digital infrastructure, cybersecurity and skills.
Last year, ICT was elevated to a strategic growth driver.
This year’s budget goes further by prioritising innovation, Business Process Outsourcing, digital infrastructure and technology-led enterprise.
Uganda’s digital progress is evident.
The country has 57.3 million mobile subscriptions, 20 million smartphones on local networks, 18.5 million active mobile internet users and mobile money transactions worth Shs 392.7 trillion annually.
These figures represent millions of Ugandans using digital tools to run businesses, access services and participate in the formal economy.
The next phase, however, will depend less on connectivity and more on the value it creates.
First, digital access must become more affordable.
While network coverage continues to expand, millions of Ugandans still cannot afford smartphones, the gateway to education, financial services, government platforms and digital commerce.
The Uganda Communications Commission’s discussion paper on telecommunications taxation rightly raises questions about whether taxes on devices are slowing digital adoption.
Globally, smartphone prices are already rising due to increasing component costs and more advanced technologies.
Layering import duties, VAT and other taxes onto these costs makes entry-level smartphones even less affordable.
As Uganda pursues digital transformation, fiscal policy should support rather than hinder device ownership.
Second, digital financial services must remain affordable and trusted.
Mobile money has become one of Uganda’s most important platforms for commerce, financial inclusion and service delivery.
Yet taxation continues to increase transaction costs, particularly for low-income users making small-value transfers.
If Uganda is to deepen financial inclusion, digital financial services must remain accessible and affordable.
Third, we must invest in digital skills.
Infrastructure alone does not create transformation. People do.
Uganda’s youthful population is a major advantage, but success in a digital economy requires practical digital literacy, data skills, cybersecurity awareness and the ability to use technology productively across sectors.
This demands stronger collaboration between Government, academia, industry and civil society.
Skills are what convert connectivity into productivity and opportunity.
The opportunities in Business Process Outsourcing, fintech, artificial intelligence and digital commerce are already here.
Countries that lower barriers to access, strengthen digital capabilities and create the right policy environment will attract investment and create jobs.
This budget sets the right direction by recognising technology as economic infrastructure.
The task now is execution.
By making digital access more affordable, keeping financial services accessible and equipping citizens with digital skills, Uganda can ensure that digital transformation delivers not just greater connectivity, but greater productivity, inclusion and shared prosperity.
The author is the CEO of MTN Uganda
