World Bank: Uganda’s Economy Should Adopt Digital Technology

According to the World Bank, the COVID-19 pandemic in Uganda has emerged as the most significant adverse shock the economy has experienced since the Second World War.

The World Bank states that as a result, Uganda’s economy is expected to slow significantly in 2020 and early 2021, and the outlook on all fronts has deteriorated significantly.

There are, however, areas of the economy that have shown resilience and are already adjusting to the current crisis as an opportunity to invent new ways of operating and doing business.

The World Bank informs that Uganda should adopt more use of digital technology since it offers a chance to unlock new pathways for rapid economic growth, innovation, job creation, and access to services for underserved populations.

Digital technologies have the potential to boost productivity and create better jobs in the private sector, including for informal businesses according to the World Bank, therefore it’s an opportunity for Uganda to embrace.

In a report by the World Bank, it’s a crucial time with Uganda in the grips of the COVID-19 (Coronavirus) pandemic. Digital solutions have already been significant in responding to the crisis and will be important as Uganda recovers and aim to build-back-better.

About Digital Technology In Uganda

In 2012, Uganda was ranked among the top three countries with advanced technological and innovation capabilities in Africa, according to a study conducted by Martin Prosperity Institute of the US. Uganda was second to South Africa and followed by Madagascar.

With a sizeable mobile market, and strong growth in 3G and 4G connectivity, Uganda is an exciting market in which to explore digital identity solutions, dominated by Airtel and MTN, with a number of other MNOs.

On 1st July 2018, the Ugandan government introduced the OTT tax of Ugx 200 ($0.052) daily for use of Over-The-Top (OTT) services. Mobile telecoms including MTN, Airtel, and Africell Uganda shared a directive from the Government of Uganda about the new tax.

According to the directive, OTT service includes all applications or Apps that offer voice and messaging services over the internet. Over 50 services including Facebook, Whatsapp, Twitter, Snapchat, Instagram, Skype, LinkedIn were affected.

The Digital technology in Uganda has been affected by the introduction of the OTT tax which limited communication on different digital platforms, therefore, Digital technology in Uganda can best be embraced if OTT is banned.

Compiled by Nsunjo Erica